My email is missamy@lapazschool.org
The summer break:
Read articles about businesses!
Wall Street Journal, New York Times, Harvard Business Review, Financial Times, The Economist, Bloomberg are all great publications for you to read.
If you email me with questions and comments over the break you will have extra points going into next year.
June 27: Vocabulary: Cost Center: a department or other unit within an organization to which costs may be charged for accounting purposes. Revenue Stream: the amount of money that it recieves from selling a particular product or service. Turner: advertising, cable subscriptions, physical products, games, investments.
More Costs: The second way of categorizing costs leads to two distinct types of costs - direct and indirect (or overheads) costs. It is helpful to categorize costs in this manner when preparing financial accounts (e.g. the profit and loss account), which we will cover later in this unit. Direct Costs:
Businessdictionary.com states that direct costs are:‘An expense that can be traced directly to (or identified with) a specific cost center or cost object such as a department, process, or product. Direct costs are often variable costs, but not always. For example, raw materials used to make a specific product would be both a variable cost and a direct cost. In contrast, the salary of a human resources manager would be considered a fixed cost, as it does not vary in the short term. However, it would be considered a direct cost because it can be traced directly to the human resources department.‘
Indirect Costs:
Businessdictionary.com states that indirect costs (or overheads) are: ‘An expense (such as for advertising, computing, maintenance, security, supervision) incurred in joint usage and, therefore, difficult to assign to or identify with a specific cost object or cost center (department, function, program). Indirect costs are usually constant for a wide range of output, and are grouped under fixed costs.
Since it is often difficult to reduce costs directly related to the production of a product, overheads can be under great scrutiny from cost-conscious businesses.‘
Exercise: Suggest one example of a business cost (e.g. salaries, rent, utilities, raw materials, loan payments, taxes, etc.) that fit each of the following classifications. Make sure to include your reasoning.
Variable and indirect
Fixed and indirect
Variable and direct
Fixed and direct
Classify these costs: Rent, research and development, utilities, administration salaries, COGS, insurance, security, maintenance on machinery, legal expenses, shipping, import duties
June 23:
Choose one of the questions from below. Research a company and write an essay based on your findings. Due Friday June 30th.
Unit 1 questions Business Organizations and Strategy. Make sure that you understand the topics that are explored along with the concepts.
Discuss the consequences of a change in any combination of the STEEPLE factors for an organizations objectives and strategy. With reference to one or two organizations that you have studied, discuss how ethics and change may influence organizational objectives. With reference to one or two organizations that you have studied, examine the role of innovation in possible growth strategies. With reference to one organization that you have studied, evaluate the impact of change and globalization on its growth. With reference to one or two organizations that you have studied, discuss ethical considerations and the changing role and nature of CSR. Discuss the role of ethics and innovation in the CSR of an organization that you have studied. With reference to one or two organizations that you have studied, discuss the need for organizations to change objectives and innovate in response to changes in the internal and external environments. With reference to a multinational company you have studied, examine how stakeholders have been impacted by change and globalization. With reference to one or two organizations that you have studied, discuss the role of culture and ethics in the growth and evolution of organizations. With reference to an organization, evaluate the importance of change and innovation when starting a business.
Unit 3 Questions Finance. Make sure that you understand the topics that are explored along with the concepts.
With reference to an organization, examine how ethics and globalization have impacted on its sources of finance.
Unit 4 Questions Marketing. Make sure that you understand the topics that are explored along with the concepts.
With reference to an organization, discuss strategies associated with market share in response to changes in the external environment.
With reference to an organization, discuss the implications of change and innovation on an organization's market share. Discuss the implications of cultural differences and globalization on the international marketing for an organization of your choice. With reference to an organization, discuss how ethics and culture influence the way firms target consumers in different markets. (target markets) With reference to an organization, discuss how innovation and culture can differentiate an organizations products and themselves from competitors. With reference to an organization, discuss the importance of innovation and ethics on marketing. With reference to an organization, discuss the importance of a unique selling point as a strategy in response to change. With reference to an organization, discuss how an organization can use market research to guide innovation and strategy. With reference to an organization, discuss how globalization can affect an organization's pricing strategy. With reference to an organization, discuss change and globalization considerations in an organization's branding. With reference to an organization, discuss changes in a product's life cycle and possible extension strategies. With reference to an organization, discuss the impact of technological innovation on promotional strategies. (viral marketing, social media marketing) With reference to an organization, discuss strategies and the role of innovation in e-commerce.
June 21:
How to answer a CUEGIS question:
Introduction to the essay: This can have information about the company that you are talking about and the meaning of the 1 or 2 concepts that you are addressing.
The main body of the essay: This is 3 to 4 paragraphs.
Each paragraph should include:
Main point that connects to the concept.
Main point that connects to the content.
Stakeholder affected (could be an individual or group)
Supporting evidence
Conclusion
Summary of the main points along with an answer to the question.
You will be graded on these points: K Knowledge and conceptual understanding A Application of the tools and concepts R Reasoned arguments (balanced with specific examples) S Structure of your essay. (See above) E Individuals and Societies (Stakeholder that is affected. Can be individual or a group.)
June20:
Breakeven analysis playground! (and maybe a tiny little quiz about the content from Friday)
June 16:
Back from our field trip! Today we just focused on the breakeven power point a little way down on this wiki. Even though we only focused on that we didn't even make it to margin of safety on the powerpoint.
Revenues
Whereas money going out of the business is considered costs or expenses, money coming into the business is considered revenue. There are many different terms used to describe revenue (e.g. sales, sales revenue, sales turnover, and operational income), but businessdictionary.com defines revenue as:
'The income generated from the sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted. Revenue is shown usually as the top item in an income (profit and loss) statement from which all charges, costs, and expenses are subtracted to arrive at net income.' Source Businessdictionary.com
Revenue consists of cash and credit transactions and is recorded on the date the item was sold. In other words, revenue is recognized when the income is earned and not when it is received. Revenue for a given period of time is generally calculated through the following formula:
Revenue = Price X Quantity Sold
A visual representation would look a lot like the variable cost graph. It would start from the origin, because without any products being sold, there is no revenue. The main difference is that the total revenue line would be stepper than the variable cost line. This is because the business would charge a price higher than the variable cost per unit.
Of course, organizations often sell multiple products at different prices, but this simple formula and graph is an important one to keep in mind to understand revenue and will be used when we cover break-even analysis..
t will be important for us to address the following limitations of break-even analysis whenever we apply it:
No inventory (or stock). This model assumes that the quantity produced is the same as the quantity sold. We will learn more about production and stock control next year, but you can probably imagine that it is quite difficult to achieve an inventory of 0.
One product. This tool becomes quite challenging when considering multiple products. So, for this course we will only apply this tool for one product.
One price and one variable cost per unit. The total revenue and total cost lines are straight lines (i.e. linear) on the break-even analysis graph. This means that as quantity increases and decreases the price and variable cost per unit stay the same. In reality, businesses often experience economies of scale and diseconomies of scale and charge different prices for bulk orders, which would suggest a non-linear relationship.
Static tool. This is perhaps the most significant limitation. As we know, businesses operate in a dynamic environment where things are constantly changing (e.g. costs of production can quickly change and demand for a product can quickly change). This tool is only a snapshot of the current situation and would need to be adjusted to account for any changes in the situation (e.g., change in the costs and the price of a product).
Quantitative tool. This tool ignores any qualitative factors such as the labor, management, and competition involved. In general, it is always better to consider both qualitative and quantitative factors when planning and making business decisions.
June 9: Field trip presentations to help class better understand the workshops that we will be having.
Each team will have 10 minutes to present their company or destination and how it relates to the business class. What is interesting and what kinds of questions can we ask?
Tono and Santiago - Civil Rights Museum
Thomas and Randy - TM Capital
Christine - Okabashi footwear brand
Jade and Joustinne- Center for Disease Control
Melodie and Lily - Turner Broadcasting
Marco P. and Manuel - Cartoon Network
June 2: Profe Jose will substitute.
Your presentation for Corynne is on Tuesday of next week.
Please create your slide deck, practice your presentation, work on your creative element and make sure that your presentation is professional and complete. Make sure to use your time wisely.
May 31: Jake will substitute and you will probably not get through all of this. Can someone bring graph paper to class?
Introduction
Our first finance topic, 3.1 sources of finance, covered the various ways finance can be raised to cover expenditures. As you recall, some of the sources of finance were more appropriate for long-term expenses or capital expenditures (e.g. share and loan capital) while other sources of finance were more appropriate for short-term expenses or revenue expenditures (e.g. overdraft and trade credit). Beginning with this lesson, we start the next finance topic - 3.2 costs and revenues. Specifically, we will look more closely at the different types of costs businesses face.
We will classify the different types of costs faced by businesses. Specifically, we will categorize costs in two ways depending on if the costs vary directly with:
The level of output (i.e. level of products produced and sold)
The output level of a specific product or a department
The first way of categorizing costs leads to three distinct types - fixed, variable and semi-variable costs. It is helpful to categorize costs in this manner when performing a break-even analysis, which we will learn about later this week.
Fixed costs can be depicted visually by the graph displayed above.Businessdictionary.com states that fixed costs are: ‘While in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short term cost accounting. Organizations with high fixed costs are significantly different from those with high variable costs. This difference affects the financial structure of the organization as well as its pricing and profits.‘
Variable Costs
Variable costs can be depicted visually by the above graph. Businessdictionary.com states that variable costs are:
‘A periodic cost that varies in step with the output or the sales revenue of a company.Companies with high variable costs are significantly different from those with high fixed costs. This difference affects the financial structure of the company as well as its pricing and profits‘
Semi-Variable Cost
Businessdictionary.com states that semi-variable costs are:
‘Production cost (1) that remains fixed up to a certain volume, after which it becomes variable, (2) the total of which responds less than proportionately to changes in volume of activity, or (3) which has both a fixed cost element (such as monthly rental for a phone line) and a variable cost element.
In reality, most costs have both a fixed and variable element, thus making them semi-variable. Semi-variable costs are more difficult to depict visually, but one interpretation is shown above.
Describe your marketing mix elements and include your advertisement.
Recommend the next steps to be taken in the marketing planning process.
Start finance unit with Homework for May 25:
Have you heard the phrase ‘It takes money to make money.’? The first aspect of finance we will consider is the different ways businesses can acquire finance to run their business. There is a list of various sources of finance that is located below that we will need to become familiar with. This is the goal of the google docs activity that we will do today.
You will also need to be able to determine which source of finance is best for a given situation. This will require you to consider the specific circumstances of the situation and relate it to the advantages and disadvantages of the different sources of finance. The discussion activity which you will complete will outline how we will help each other develop this skill.
For this activity, we are going to pool our collective genius and complete a google presentation as a class by following the instructions below. Choose three of the following sources of finance or one of the expenditures from the following list:
Capital Expenditure Miss Amy
Revenue Expenditure Miss Amy
Personal funds (for sole traders) Santiago
Retained profit Randy
Sale of assets Santiago
Share capital Jade
Loan capital Lily
Overdrafts Marco P.
Trade credit Toño
Grants Joustinne
Subsidies Christine
Debt factoring Melodie
Leasing Thomas
Venture capital Manuel
Business angels Jade
Hire Purchase Melodie
We will create a google slide share about these terms. With your term you must include:
Define each term and explain how each term is a source of finance for a business
Explain the advantages/disadvantages of each source
Suggest an example when this might be used. For example, consider whether the source of finance is appropriate for short or long-term needs.
Cite your source.
Short term finance-This is for any kind of finance that needs to be repaid within a year. (12 months)
Medium term finance- This needs to be repaid within the timeframe of 12 months and 5 years.
Long term finance- This type of finance refers to any period of five years or longer. (Long term loans, debentures.)
May 23: Make cards with the art students today. Take your time and be concientious because these are going to the people that we need to thank for all that they are doing in Atlanta.
May 16: There will be a Unit test on Friday over all of the Marketing course. Questions ? Let me know.
What is different about e-commerce versus brick and mortar? * Global Reach - e-commerce breaks global barriers! * 24/7 accessibility - they are open all the time so it is more convienient. * Access to information - consumers are now able to find detailed and accurate product information which helps make informed buying decisions. * Consumer reviews - empowers customers to post online consumer reviews, which can have a direct impact on the business decision of other customers. Customers can also share via their social media networks. * Impersonal interaction - Business to Consumer firms rely heavily on e-commerce to reach their customers and their interaction with them is totally impersonal.
Barriers to entry - There are fewer setup costs for an e-retailer. There are cultural differences that still exist like customers in India that do not trust the use of online payments.
How does that effect Price? Melodie, Randy, Thomas How does that effect Product? Jade, Christine, Marco How does that effect Place? Manuel, Joustinne, Santiago How does that effect Promotion? Tono, Lily
It can lead to viral marketing, i.e. word of mouth marketing that facilitates and encourages people to spread a marketing message to a family, friends and other acquaintances. This helps the business to gain reputable and free publicity.
Guerilla marketing does not always reach the right target market. Quite often, guerrilla marketing campaigns use a scattershot approach, aiming at every person and any market segment within reach, but this does not necessarily generate much business.
Guerrilla marketing can be very inexpensive and is often free. Levinson suggested that the main measure of promotional success is profits and not sales, i.e. traditional ATL promotional methods might bring in more sales but the huge cost involved ultimately yield lower levels of profit.
Guerrilla marketing techniques can be rather intrusive (in your face). People are already bombarded with advertisements from the moment that they wake up. The invasive nature of unsolicited guerrilla marketing techniques may simply add to the everyday advertising clutter.
Guerrilla marketing can promote creativity and healthy competition.
Controversial and unethical methods are sometimes used. Many guerrilla techniques have been accused of being deceptive, confusing, distasteful or offensive. This can actually create negative publicity for the business.
Guerrilla tactics can help a business to better understand the needs of its customers by coming up with creative ways to communicate its products.
There can be a large opportunity cost in terms of the time and resources spent in devising an original campaign. Spending lots of time and money to raise publicity does not necessarily bring in more customers for the business.
Guerrilla marketing does not always work, e.g. IBM was fined $120,000 for spray-painting the streets of San Francisco in 2001.
Business and Management Paul Haong
Place
The downfall of the video store is not the product. People still watch videos at home. https://www.youtube.com/watch?v=3TrPwOrf4sM
After watching the video explain how influential place decisions have been in this marketing mix.
Place is defined by the textbook as: A distribution strategy that determines how a customer will receive the product. This is a decision that is linked to marketing objectives and fully integrated into the marketing mix.
Channels of Distribution: A chain of intermediaries that a product passes through from producer to the final consumer.
A specialty channel of distribution is any indirect way to distribute products that do not involve retailers. Some exampes are: telemarketing, e-commerce, vending machines and mail order.
Advantages are: there are no intermediaries and so the business doesn't have to share any of the profits, businesses have direct control over their distribution, they can reach potential customers who do not have easy access to retail outlets.
E-commerce or Electronic Commerce refers to the buying and selling of goods and services online.
Here is the power point without the videos. I have added the urls.
Work on presentations for Corynne.
Social Marketing:
Digital Technology has added a new dimension to marketing. While promotion through traditional media such as newspapers, television and news web sites was about delivering a message, promotion with social media is about building a relationship and conversation with customers. Study on trends in social media: http://socialmarketingwriting.com/3-infographics-with-100-social-media-statistics-you-need/
With nearly 49.6% of the world online in 2017, companies today are recognizing the ability of social media to reach a wide global audience quickly. http://www.internetworldstats.com/stats.htm
The term ‘viral marketing’ is used to describe a situation where an idea spreads exponentially typically through the use of social media helping your business or cause. As Seth Godin explains in this blog post:http://sethgodin.typepad.com/seths_blog/2008/12/what-is-viral-m.html viral marketing can happen through the nature of the product or as a separate marketing campaign. The term ‘guerrilla marketing’ was first identified by Jay Conrad Levinson in 1984 and is described on his website: http://gmarketing.com/what-is-guerrilla-marketing/ as '...achieving conventional goals, such as profits and joy, with unconventional methods, such as investing energy instead of money.' Although guerrilla marketing can be quite powerful and almost necessary for small businesses, large businesses have also used this strategy. The videos in the next section provide a couple of examples.
Watch the coca-cola happiness machine in action as Coca-cola looks to have people associate happiness and pleasure with their product. https://www.youtube.com/watch?v=lqT_dPApj9U
Watch Paramount Pictures’ viral marketing stunt for its film ‘Paranormal Activity’. What was started with a mere $15000 budget has emerged as the most profitable movies of all times. Thanks to Social Networking. https://www.youtube.com/watch?v=9Mp6Buc0Ch0
Discussion Read through the questions below and select one to answer. 1 Evaluate the success of 'social media marketing' as a means of promotion for companies today? 2 Share a real world example of viral marketing or social media marketing technique used by a company (you can use images or videos). 3 Analyze the purpose of 'promotion' for companies like Paramount Pictures in maintaining sales and market share for non-essential products.
May 5:
Pricing stategy homework is due.
Case study exam on Pricing strategies.
Packaging
'Even in a shadow, people know it’s a Coke', observes a packaging expert. It’s a beautiful definition of how a package can influence the way a consumer perceives a product. Traditionally, the primary function of the package was to contain and protect the product. Currently, various factors have made packaging an important marketing tool. Green packaging, squeezable ketchup bottles, Universal Product Codes (UPCs) are just some packaging techniques companies use.
In 2007 violinist Joshua Bell played his violin in the Washington DC Metro during rush hour. His video is below:
https://www.youtube.com/watch?v=WC9IvjrgZ7I
Normally, Joshua Bell earns close to $1,000 a minute on-stage at venues such as Carnegie Hall. While in the subway, he earned $35 in one hour. Packaging a product or service is very important.
Multiple objectives of packaging:
Identity
Present information
Protect and allow the product to be transported
Aids in consumption
Ability to store the product
Here are some ways in which colors are used in retail and business:
Red: Creates urgency - often used in sales and impulse sales
Green: Easy, calm - used to relax people
Blue: Creates trust - used by financial institutions such as banks
Navy blue: Cheaper - selling to price-sensitive
Royal blue: Urgency - selling to impulse buyers
Pink: Romantic - selling to women and girls
Yellow: Grabbing attention - used in displays and windows
Orange: Energizing - used to push for action, as in impulse buying
Purple: Calm - used in anti-aging products
Black: Power - selling luxury, aggressive products, or to impulse buyers
Find an image or video of a package and explain its importance. Remember, a package is not only meant to contain and protect the product but perform numerous functions such as:
* Customer perception. Customers perceive quality packaging with a quality product. * It acts as a form of product differentiation. * It protects a product during transportation adn distribution of the product. * Labelling can be used to provide information whcih could be leagal, informative or promotional. * Packaging can be used to encourage impulse buying such as candy at the point of sale. * Packaging can be used to promote the brand. (Starbucks coffee cups.)
Marketing Project Product: What is your product/service? Describe the appearance, packaging, purpose and use for your product/service. Who is your target customer (consider age, social group, income)? This information should come from your market research.
Work on the Frijoles Locos project.
May 3:
Pricing:
Price refers to the amount paid by a customer to purchase a good or service. The pricing decision is a crucial part of any marketing strategy.
The ultimate objective of all marketing activities of a company is the long-term growth in profits. Pricing strategies are aimed at achieving that goal.
Pricing Strategy video that very clearly answers a test quetion for the IB. It explains the business, the product, the decision that needs to be made. Then it lays out the different options and the positives and negatives of each and how they connect back to the business. Then it answers the question clearly with good justification. https://www.youtube.com/watch?v=XBmWEduod5k#t=31
Interesting article about pricing strategies of Xbox and PS4. Companies behind successful products can still fail unless they can capture some of the value that they create in the prices they earn.
Which one would you purchase? Would you just purchase the lowest priced item? Or would you consider other factors? Does it depend on the product being purchased? Chances are price is not the only consideration.
Homework: We have a general understanding of the different pricing strategies now, let’s examine the appropriateness of these strategies in the real world. Each student has access to this Google Sheet. Use the infomration above and your own research skills, fill out the spreadsheet together. Make sure that each student makes at least 3 additions to the google sheet.
As you complete the advantages and disadvantages consider the following for each pricing strategy:
The nature of the product, customer, market and competition
The short and long term impact on sales and profit
The target market and target revenue
The financial position of the business
May 2: Homework: Branding yourself!
April 28: Objective: Students will understand the importance of all 4 aspects of the Marketing Mix and how they fit together.
Vocabulary: Marketing plan: A document outlining a firm's marketing objectives and the marketing strategies to be used to achieve these objectives.
Includes: SMART marketing objectives e.g. expected sales turnover within a specific timeframe, market research methods, assesment of strengths and weaknesses of competitors, outline of marketing mix, details of the budget, outline of anticipated difficulties and strategies to deal with these problems. Marketing Mix: The combination of various elements needed to successfully market a product. The 4 P's: Product, Price, Promotion, Place.
Marketing project. See below:
Marketing Project update:
Choose the product or service that you will focus on based on your market research. Create a marketing plan for your chosen product/service
Outline each part of the marketing mix and explain how they link together to create the desired product/service that your team wants to offer.
Product — What is your product/service? Describe the appearance, packaging, purpose and use for your product/service. Who is your target customer (consider age, social group, income)? This information should come from your market research.
Price — Decide what price will be charged for your product/service. Don't just state $5 for example, use pricing strategies.
Promotion — Design an advertisement within your team. You can use iMovie, Flash etc. Be as creative as you like, but remember that you want your customers to purchase your product/service. Decide where and how you will advertise your product/service. Use marketing terminology such as above/below the line promotion strategies. Remember that your advert makes up only a small portion of the marks allocated for this task. Your focus has to be on the overall marketing plan. Assign your time for this advert accordingly.
Place — Where will you sell your product/service? What channels of distribution will be used?
Create your final presentation:
Reference your market research.
Describe your marketing mix elements and include your advertisement.
Recommend the next steps to be taken in the marketing planning process.
April 26:
Boston Matrix Quiz
Work in groups to prepare questions for Corynne on Friday.
April 25:
Branding
Play the game at home. http://quizzzz.net/en/logo/ How did you do? Don’t worry if you were unable to get them all right. In fact, the following activities will show that a brand is much more than just a logo.
What is Branding?
Easy to understand video about Branding.
Key vocabulary: Branding: The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. http://www.businessdictionary.com/definition/branding.html
Consider the following terms and their definitions and the role they play in branding:
Brand awareness - the extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of target market, brand awareness is the primary goal of advertising in the early months or years of a product's introduction. (Source: Business directory) Example: Coca-Cola 98% of respondents recognize the Coca-Cola brand. Higher level of brand awareness the higher the sales revenues. It also results in higher market share. It is important to raise brand awareness in the introductory phase of the PLC. Coke, Kleenex, and Band-aids are at the highest level of brand awareness. You use the name of the product to describe the item.Ways to increase brand awareness: incentify referrals, offer free test items, partner with other businesses.
Brand loyalty - the extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands. (Source: Business directory) This helps a brand extend a product's life cycle.
Brand development - a marketing approach designed to make a brand more successful by changing it over time to ensure it remains popular and fashionable; and creating a brand strategy for the firm that is consistent with its mission, values, and strategic vision. (Source: Paul Hoang) Helps businesses maintain or improve their market share. Allows businesses to charge premium prices. It prolongs product life cycles.
Brand value - the sum total of how much extra people will pay, or how often they choose, the expectations, memories, stories and relationships of one brand over the alternatives. (Source: Seth Godin typepad.com) Brands usually have higher market share, can charge premium prices, and there are barriers for competition to enter their space if they have high brand value.
Personal branding using the 4 concepts above:
What is YOUR Brand and what does it stand for?
Brand MISS AMY: Motivation, Positivity, Engagement, Inclusion, Laughter
CAS and Business are my subjects. The consistency of positivity, inclusion and motivation need to be the cornerstone of all my outputs.
My target audience is 10-12th grade high school students and their parents, but I need to make sure that I am starting to engage all middle school students and parents as well.
Miss Amy is my name. I need to make sure that I differentiate from Miss Amy that teaches middle school English by maintaing high energy and exuding positive warmth to all students and community members.
My slogan/jingle: My laughter. This also helps to differentiate me. It is known throughout the school and people listen for it.
Brand Awareness: My brand awareness is high among the high school and middle school students at La Paz Community School. However, I can to work on Brand Awareness. I am a new teacher in the introductory stage of the PLC. I can create brand awarenes by promoting my work on La Paz Community School YouTube channel, La Paz Facebook Page and morning meeting which will create brand ambassadors amoung the students.
Brand Loyalty: My brand loyalty is is developing. As a new teacher I am still gaining the trust of the students in the subject area of Business. My subject is highly competitive because Art is the other subject that Business and Management is competing against. There is little barrier to entry to enroll in art. If my Brand Loyalty increases, my success as a teacher will improve my market share and I will be able to demand more of my students. This will increase the scores in B&M at the end of the course. I will try to develop some student loyalty schemes in order to keep my students, such as feeding them on a regular basis as an added benefit.
Brand Development: I will develop my brand and increase brand awareness by using the tools mentioned above. I will also conduct market reseach at the end of each trimester in order to improve my teaching and interaction with the students. I will bring high energy and engaging activities to class on a daily basis in order to continue to develop my brand.
Brand Value: Because I am developing my brand, I can not charge premium pricing yet. I need to create engaging content that makes the students think that they are having fun and not working, but still learning content. This will entice other students to take the class and grow the Business and Management piece of my brand. This will increase morale and productivity.
April 21:
Continue to understand the product life cycle:
Select one popular product in the market which is selling like hot cakes (i.e. a product that is in the growth stage). Describe the marketing strategy behind the success of this product.
Select any brand in the Maturity stage. Explain what marketing strategy has helped this brand stay for such a long time in the Maturity stage.
Using a real world example, identify what Extension strategy was implemented by a firm to prevent its product from entering the Decline stage.
Objective: Students will understand the difference between market share and market growth and be able to explain the Boston Matrix and utilize the tool to make recommendations about a product portfolio.
Vocabulary: Product Portfolio: The variety of products owned by a business. Strategic Business Units: divisions of an organization. Examples include Gatorade, Pizza Hut and KFC that are owned by PepsiCo.
Boston Matrix: As part of product planning, a firm will constantly review the performance of a portfolio of its products, just so that it can spread the risk. Have you heard the saying: 'Don’t put all your eggs in one basket?'
The best-known method of analyzing a product portfolio to see its balance was devised by the Boston Consulting Group. A simple matrix enables firms to classify their products according to two key variables: relative market share and market growth, resulting in FOUR categories. These four categories equate neatly to the stages in the life cycle of a typical product which you learned on Wednesday. A ‘Question Mark’ is a product introduced recently which has not yet established itself, hence the doubt as to its future. If it passes through the growth stage successfully, it may become a ‘Star’ and then a ‘Cash Cow’ as it reaches maturity. Once it passes into decline, it becomes a 'Dog'.
.
The-Growth-Share-matrix
The-Growth-Share-matrix
Questions:
Explain why a broad and balanced product portfolio would be important for a business to succeed?
April 19:
Homework due at the beginning of class. The Ethics of Market Research One final but important and relevant aspect of market research involves considering the ethical issues involved in the collection and use of market research. As the IB Business and Management guide states, 'every business decision has moral implications' and 'these consequences can be significant for internal and external stakeholders and the natural environment.'
Consider one of the following questions and answer in your notebook.
What are the ethical implications of gathering, accessing, storing and using private information? Melodie, Christine
How can market research be collected and used ethically? Santiago, Jade
To what extent is market research dependent on knowledge of the past and to what extent is it about knowledge that tries to predict the future? Is one more prevalent than the other? Marco P., Manuel
How does the sampling method (e.g. convenience sampling) being used create or prevent bias? Tono
How does the use of language create bias? Can it prevent bias? How might the language used in polls and questionnaires influence consumers and businesses’ conclusions when doing market research? Joustinne, Randy
The observer effect is a common problem in the social sciences whereby knowledge of being researched influences how people answer questions and behave. What problems does the observer effect create for market research? Lily, Thomas
The Classic Life - Cycle
Markets are in a constant state of ‘change’. Over time, tastes and fashion change and so does the technology to produce goods and services. As a result of this change, new products will be demanded whilst old products will become obsolete. Which of the following (if any) have you seen recently?
The following image shows a typical Product Life Cycle, the course that a product’s sales and profits take over its lifetime.
The Product Life Cycle has 5 distinct stages.
Image result for Product Life cycle diagram
1. Research and Development: This is where company's design and test new product. This tends to be expensive and time-consuming for businesses.
Companies will develop a prototype and test that prototype. Feedback from customers on the product and the advertising at this stage is critical. Most ideas at this stage do not get out of R&D. So when companies launch products successfully they need to make sure that they cover their costs of the successful products and budget for the unsuccessful ones.
2. Introduction Stage: Sales are relatively low in this phase (usually). And costs are very high for new promotions, distribution, lack of economies of scale. Innovators take the risk of buying these products.
3. Growth Stage: Sales revenue increases during this stage of the product life cycle. There are more channels of distribution and more customers (early adopters) that want to buy the product. Profits start rolling in and economies of scale start kicking in. However, competition comes with success as well.
4. Maturity Stage: Sales revenue start to plateau during this stage. Sales are at their peak and market share is high. Cash flow and profits increasing because economies of scale give the business a competitive advantage. There could be many competitors at this point and saturation could occur. So businesses will need to focus on reminding the customer that the product is still important or look to new market segments.
5. Decline Stage: Decline is the final stage before a product is withdrawn from the market. Sales and profit fall along with cash flow.
Making purely cosmetic changes to the product, shape, colour or packaging
Adding new accessories
Bringing out new product variants
Designing a new advertising campaign
Finding new customers.
Select one popular product in the market which is selling like hot cakes (i.e. a product that is in the growth stage). Describe the marketing strategy behind the success of this product.
Select any brand in the Maturity stage. Explain what marketing strategy has helped this brand stay for such a long time in the Maturity stage.
Using a real world example, identify what Extension strategy was implemented by a firm to prevent its product from entering the Decline stage.
Review games: We will go over what we learned in the marketing unit with some of the first trimester sprinkled in using the games. 4 examples and Fly Swatter!
Marketing terms:
Market: A place or process where the customers and suppliers trade goods and services.
Social Marketing: The planning and implementation of programs designed to bring about social change.
Commercial Marketing: The use of marketing strategies to meet the needs and wants of the customer in a profitable way.
Niche Marketing: Targets a well-defined market segment. (model trains)
Mass Marketing: Refers to undifferentiated marketing that ignores targeting individual market segments. This is to maximize sales volume. Coca-Cola is a good example.
Perception Map: A visual tool that tells customer perception of a product or a brand.
Unique Selling Point USP: What makes a brand, product or any aspect of a business, stand out from the competition.
Differentiation: The act of distinguishing a business or its products from competitors.
Cluster Sampling: Selecting several geographic areas and randomly interviewing them. The region is chosen at random and then the individuals are chosen at random. This is great for businesses that operate in many geographical areas. However, the cluster being sampled could have different or unique characteristics.
Random Sampling: Every member of the population has the same probability of being included in the sample. It is easy to obtain the sample but the target market is not always represented.
Stratified Sampling: Dividing the population up into different subgroups and then choosing individuals from those subgroups at random. (So start by dividing the population up into groups that are different.) This method is difficult to organize but gives more accuracy.
Quota Sampling: Most commonly used sampling method. A certain number of people from different market segments are selected. It is easy to obtain a sample and the findings are more reliable than random sampling. However, not all the people chosen are representative of the population.
Snowballing: Requesting referrals from the initial respondents so that you can reach the desired number of responses. There is bias in this method of sampling but is easy to obtain respondents.
Convenience: Individuals are selected on their availability. This has the most inaccurate and biased results so try to get as many responses as possible.
Larger concepts to make sure that you understand.
Market and Product Orientation
Market Share: Formula and idea behind what it means to control the market or be the market leader.
Perception Map: How to use and why it is important.
What is a Market? What are different market segments?
What are different examples of a USP?
In what ways can you differentiate your business? Product? Brand?
What are the different Sampling methods and what are the drawbacks and benefits of each?
What are some Sampling errors that could be made when doing market research?
Market Research: What words come to mind when you think of it. What are the ethical implications of Market Research?
Making sure that ethical implications are taken into account is extremely important. Making sure that as a researcher that you do not cause Damage, be Deceitful, be Deceptive, Disclosure, Detachment.
Jigsaw:
1A Melodie 2A Christine 3A Joustinne and Tono Differentiation, Market Share
1B Lily and Randy 2B Santiago 3B Manuel Perception Map, Product and Market Orientation
1C Jake 2C Marco 3C Thomas Market Research Sampling Methods
Once you complete quadrants on your topic in your notebooks the ones will all go together (twos and threes as well) and teach each other the concepts that they worked on along with adding at least 4 new ideas to each.
Leave posters for the room.
March 14: Work in groups on the Market Research presentation for Friday.
Send a copy of your survey to Miss Amy for grading and feedback.
March 10:
Objective: Understand and be able to create a Perception map. Understand the concept and definition of Unique Selling Point (USP).
Perception (position) map: A visual tool that reveals customer perceptions of a product or brand in relation to others in the market.
It helps a business to identify any gaps in its product portfolio. It also helps a business define and improve their marketing strategies.
When Graphs Tell a Story
Let’s take a moment to think about different types, brands, prices and flavours of ice creams. Which ice cream brand name comes to mind when you think of top quality ice cream? Likewise, which brand name comes to mind when you think of a cheap ice cream? Are there any other brands that you think are in between the top quality one and the cheap one? Just as you hold different views about different ice cream brands, customers hold various views or perceptions for almost any product/service. Companies trace or plot these views or perceptions that customers hold of their products/services onto a map known as a ‘perception map’ or 'perceptual map’. Usually any two variables are plotted graphically, for example, quality and price in the case of ice cream. How are Perception Maps created and used? Firstly, the most important attributes that influence consumer choices are taken into account. Secondly, marketers can decide where their own position is relative to competitors. Thirdly, it identifies where a gap exists in the market so the company can position itself strategically. For this reason, these maps are also referred to as product positioning maps.
Advantages of a perception (position) map:
1. Very easy visual that simplifies the market research findings.
2. These graphs are quick and easy for management to interpret. Then they can make decisions based on information, may need to reposition a product...
Creating a perception map:
Label the axes. (Some examples: friendly/aloof, professional/unprofessional, comfortable/uncomfortable, stylish/functional, youthful/older, good value/poor value, full service/self service, advanced user/beginner, luxury/budget)
Decide on the brands that you would like to list in the perception map (competitors in the market)
Score the attributes based on a 0-10 rating and place on the perception map in the correct quadrant. Make sure to take your feelings out of the equation. This is how the consumer sees the product.
Analyze the map for either underserved by the market and areas that marketing can improve.
3 stages to positioning
1. Identify the competitive advantages of the product in question.
2. Decide on which aspects of these strengths should be marketed.
3. Implement the desired positioning by using an appropriate marketing mix.
Unique Selling Point (USP): The differentiating factor that makes a company's product unique, designed to make customers buy.
March 9: Define:
Who is your market and why?
What do you want to know?
How will you collect the data?
These should dictate the type of questions that you will create.
Presentation
What was your methodology? (sampling method, secondary primary, qualitative/quantitative) Why did you use these methods?
Analysis of the data.
What is the path forward because of the data collected.
March 8: Marketing Plan: this week and next week
1. Determine what information you need. Do you need information on potential customers? Do you need information on competitors? Do you need information on the market?
2. Gather both primary and secondary research. You will need to use one sampling method.
Define the problem. What do you need to know? How will you collect the data? Write questions.
For your presentation at the end of next week.
An explanation of your market research process
An analysis of your data.
A path forward
March 7:
Short Case Study
Utilizing the data that you received from your market research surveys, display your data in a manner that the rest of the class can understand. What successful product have you identified? What are the characteristics and why? Where should you sell it? What is the price?
Marketing Plan: this week and next week
1. Determine what information you need. Do you need information on potential customers? Do you need information on competitors? Do you need information on the market?
2. Gather both primary and secondary research. You will need to use one sampling method.
Marketing Audit: The review of current marketing activities, with the goal of enhancing the marketing performance of the company. Some examples are SWOT analysis, PEST analysis, and market research. example: Samsung 3D TVs. Research studies say that their target market is men mid-20s to late 30s, caucasian men with growing families. Marketing Objectives: Marketing objectives define what a company wants to achieve through its marketing activities. Examples of marketing objectives are an increased market share and diversifying into a new market. As with any objective, marketing objectives should be SMART.
For Samsung, in order to capitalize on the growing video gaming market, its objective is to enter into a partnership with Microsoft to develop a virtual gaming product. This will enhance their market share. Marketing Strategies: Once definite marketing objectives have been agreed, the next step is to decide on the strategies that will need to be adopted in order to achieve those objectives. This involves the company working out how they will get where they want to go. The marketing plan and the marketing mix will outline the marketing strategies to be adopted.
For Samsung, one such strategy (promotion strategy) was launching an ad campaign in which Samsung will preach the need for quality and convince consumers that if they are going to have a 3D TV, they should have the best, Samsung. https://www.youtube.com/watch?v=LD2fVZDG8VI Monitoring and Review: This involves outlining controls that will be used to monitor progress, and to check and assess that targets are being met.
By withholding 3D TVs with glasses in 2010 and selling only glasses-free TVs, Samsung monitored their market share in the 3D TV market before releasing 3D TV glasses in 2011. Evaluation: Evaluation entails measuring the results and outcomes of a company's marketing activities against the original marketing objectives set.
Has Samsung achieved its three million 3D TVs sales target for 2010? What if Samsung lost their partnership with content providers such as Dreamworks and Technicolor, with whom they have joint ventures. Samsung would look at starting a new partnership with Pixar. Such an evaluation will help with decision-making and planning for the next marketing audit.
Corynne will come to class to talk about Frijoles Locos and their new or existing initiatives that she is planning to promote.
Marketing Project:
Break up in 3 or 4 groups.
Meet with Corynne to decide on products that Frijoles Locos would like to promote to either the local community or global community.
You now conduct market research.
Prepare a questionnaire that will allow you to gather all the information you need for your product/service.
Collect the required data by getting classmates to complete your questionnaires.
Create a marketing plan for your chosen product/service. Outline each part of the marketing mix and explain how they link together to create the desired product/service that your team wants to offer.
Product — What is your product/service? Describe the appearance, packaging, purpose and use for your product/service. Who is your target customer (consider age, social group, income)? This information should comes from your market research.
Price — Decide what price will be charged for your product/service. Don't just state $5 for example, use pricing strategies.
Promotion — Design an advertisement within your team. You can use iMovie, Flash etc. Be as creative as you like, but remember that you want your customers to purchase your product/service. Decide where and how you will advertise your product/service. Use marketing terminology such as above/below the line promotion strategies. Remember that your advert makes up only a small portion of the marks allocated for this task. Your focus has to be on the overall marketing plan. Assign your time for this advert accordingly.
Place — Where will you sell your product/service? What channels of distribution will be used?
Create your final presentation:
Explain your market research process.
Interpret and analyze your market research findings.
Describe your marketing mix elements and include your advertisement.
Recommend the next steps to be taken in the marketing planning process.
Come to class with 3 connections based on your experience from marketing a vacuum and how it related to what you have learned from about Market Orientation and Product Orientation.
We will discuss these questions in small groups in class:
How has globalization influenced the change from product orientation to market orientation?
Look at Coca-Cola, Samsung, Toyota, Hershey's, Dos Pinos, Imperial, and Brit. Are they product or market oriented? What are tactics that some of these companies are using to change from a totally product centered company, if any?
Discuss how our changing lifestyles are affecting companies and the way that they market.
The podcast is How I Built This Listen to the Patagonia one with Yvon Chouinard from December 12, 2016. It is available on iTunes. Let me know what you think!
Feb. 28:
Lily, Manuel and Melodie will present their embedded marketing examples.
How to market a vacuum.
Split into 2 groups:
Group 1: Thomas, Randy, Christine, Manuel, Santiago
You will have a model of the perfect vacuum. Examine the vacuumm. What characteristics do you find that are useful?
Create a plan to sell the greatest vacuum ever and present it to Group 2.
Group 2: Lily, Melodie, Jade, Toño, Joustinne and Marco P.
Iliyana and Lourdes have decided that it is taking up too much time to sweep the carpets and floors in the new school and the existing school. Tatiana, Miss Erika, Angie and Mr. Abel have overheard them talking and believe that a new vacuum is needed for La Paz (and maybe their homes). What characteristics of a vacuum does La Paz need?
Create a plan to sell the greatest vacuum ever and present it to Group 1.
Homework: Read the following document and articles and come to class with 3 connections from the How to market a vacuum project and what you have read.
Feb. 24: Homework: Small presentation on the embedded marketing that you have found in your content. Next, look at the list created in Step 2 and answer the following questions:
Identify the demographic (e.g. age, gender, race, ethnicity, religion, marital/family status, socio-economic class), geographic (e.g. location, climate), and psychographic group (e.g. status, values, culture, hobbies, interests) the advertisement targets.
Explain whether or not the advertisement successfully targets you.
Think about which of the articles, that your class presented yesterday, that connects to your research above.
Feb. 23: Homework: Very small presentations of your articles to the class.
Continue to watch your content and see if there are any connections to the articles and prepare a small visual presentation on how you see marketing in your TV shows, YouTube videos, movies, Instagram accounts, etc.
Feb. 21: Homework:
Using your CUEGIS company:
Research your company's market.The company's market is the industry that they trade in: example Rip Curl in the surfing industry. Tell me the characteristics of the market. What are the characteristics of their customer? What trends are happening in that market right now? Is it a growing market or a shrinking market? What are the large competitors in the market?
See if you can find how much market share they have.
Create a google doc for your CUEGIS company and share it with me. From now on all research and information about your company will go on this document.
Today we will look at:
Have you ever noticed that the advertisements popping up in your email or social media programs like Facebook, Twitter or YouTube are amazingly relevant to you? Or have you ever noticed that the same types of advertisements are shown during specific television programs? You may be wondering how or why this is done. Today, we will explore the world of market segments, target markets, and niche markets. The majority of successful organizations go through a process of collecting, organizing and analyzing market research to identify different market segments. Remember, market segments are groups of people that share one or more characteristics, needs or tastes. Identifying market segments cannot always be done effectively, but with the increase in digital traffic and commerce, a vast amount of data is being collected for this purpose. When organizations understand the different market segments, they can develop their marketing mix towards a particular segment or target market. Market Segmentation: is the process of dividing a market into distinct subsets, where any subset may conceivably be selected as a marketing target to be reached with a distinct marketing mix. (i.e. product, promotion, place, price)
Segmentation Methods include: 1. Demographics-Characteristics of customer. (They frame you as a generation) 2. Benefits sought by the customer 3. Systematic, Product-Related Behaviors
It should be noted that organizations do this to varying degrees. Some organizations may have products or services that appeal to a mass market while other organizations target a more specific segment of the market, thus exploring and creating a niche market. Remember, the marketing mix is made up of several elements including the product, price, promotion and place (or distribution). In this lesson, we will focus on promotion and specifically how organizations target markets through advertisements.
Choose your content and start to look at the questions below.
Step 2 Choose either a television program or movie to watch, or a social media program, to track over the next few days. As you are watching or interacting with the program, write down the products being advertised. You will need to have a list of at least five different products. Make sure you are specific. For example, instead of writing down 'Nike', write down 'Nike advertisement for women's running and cross country shoes'.
Step 3
Next, look at the list created in Step 2 and answer the following questions:
Identify the demographic (e.g. age, gender, race, ethnicity, religion, marital/family status, socio-economic class), geographic (e.g. location, climate), and psychographic group (e.g. status, values, culture, hobbies, interests) the advertisement targets.
Explain whether or not the advertisement successfully targets you.
Think about which of the articles, that your class presented yesterday, that connects to your research above.
Speed dating.
.
Feb. 16: Present your homework to the class and discuss.
KEY TERMS - Market Size: the total sales of all firms in a market. Can be measured in two ways volume of sales (units sold) or value of goods sold (revenue). - Market Growth: the percentage change in the total market size over a period of time. Think about the characteristics of different markets. Washing Machines/computers/telephones... - Market Leader: a firm with the highest market share in a given market
Market Share: This refers to an organization's portion of the total value of sale revenue within a specific industry. It is measured by expressing the firm's sale revenue as a percentage of the total sales revenue in the industry, per time period. (Our textbook definition)
There is a clear correlation between market share and profit. There is also economies of scale benefits that come with being the market leader. These businesses are also less threatened by competition and can set prices in their industry.
Benefits of being the market leader
Sales are higher than those of the competitors in the same market, this leads to higher profits.
It is easier to obtain new channels of distribution because retailers are more likely to want to carry the market leader in their store. The place that they are displayed in the stores is usually more prominent.
The market leader does not need to discount their products to sell them and this creates higher margins.
Consumers like the most popular brand and this can be used in promotions. This can also increase sales.
Explain the market share data given for one of the products (i.e. browsers, operating systems, search engines)
Can you describe the characteristics of that market from this website? http://www.netmarketshare.com
Find information about your company's market. What is their market? What characteristics of the market can you list? Find a website that will help you with this information. Create a CUEGIS google doc that you can continue to put information into about different topics from the class.
Consumers who belong to a particular target market and segment should be clearly identifiable. The characteristics to include or exclude in identification of a market segment are also well defined and measurable. Target markets are quantifiable in terms of population, income and age bracket, among other factors. http://smallbusiness.chron.com/characteristics-market-segments-target-markets-22601.html
Market concentration: measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry. (Market leaders)
The sum of these market shares is known as the concentration ratio. http://www.economicshelp.org/blog/glossary/concentration-ratios/
Feb. 14: Important examples and notes for this section of the course: Marketing is all about getting the RIGHT (product to customer to the time - all should be RIGHT) Concerns with the 4 p`s - (Price, product, promotion, place) And additional 3 to the marketing mix which are (people, process and physical evidence) Product orientation is a key element which must take place before delivering the actual product to the customers Importance of Commercial Marketing: determine consumer needs and wants, Importance of Social Marketing: to influence a positive change to human behavior Markering size looks at total sales of a firm and its share in a total market Main marketing objective for profit organizations is to identify, design, and strategies for profit to the business Main marketing strategy to for Non-profit organizations is to market for "social" reasons
Note: Marketing is an essential process involved with almost every company in the world because it is how companies can show the people what they have to offer.
KEY TERMS - Market Size: the total sales of all firms in a market - Market Growth: the percentage change in the total market size over a period of time - Market Leader: a firm with the highest market share in a given market
Understanding the role of marketing:
We will watch and then I will upload after class with only links.
Homework: Select any one of the marketing scenarios that you were introduced to in the power point:
Marketing goods vs. services (A02)
Marketing in ‘for-profit’ organizations vs. marketing in ‘non-profit’ organizations (A02)
Commercial vs. social marketing (A02).
The idea is to relate examples from your own country. Share how a local company marketed their services or products in your community, highlight the differences that exist in marketing goods vs. services. Likewise, do you notice a distinction between marketing measures adopted by for-profit organizations vs. non-profit organizations? Lastly, commercial vs. social marketing. Share your experiences and examples with the rest of your class.
Feb. 10:
Spark:
Close your eyes: Think about what products you have come in contact with today. (Food, electronics, clothing) What are two things that you can not live without that you have used today? What made you purchase this item? How was that emotional connection created?
Do all organizations market themselves? Do they have a choice whether or not to carry out marketing? Why do only some stand out for their systematic marketing effort? Let’s explore some answers to these by looking at the Beckhams.
Brand Beckham!
The husband-and-wife partnership of former England soccer captain David Beckham and former Spice Girl Victoria (‘Posh Spice’) is worth a half of a billion US dollars. How can this partnership of a ‘former’ soccer star and popstar be more famous than what they started out? Simply put, the answer is brilliant marketing. The fame of ‘Posh and Becks’ spans five continents. Beckham is the second-most-recognizable foreign word in Japan after Coca-Cola. The combined business revenue of the couple is almost US $165,000 a day. So, what can David and Victoria Beckham teach us about marketing? Although David Beckham’s football career is over, brand Beckham is bigger than ever. We will watch a couple videos about the couple and what they sell.
Write your answer to at least one of these questions. You should also respond to at least two of your classmates discussion points.
Most people think of marketing as just the advertising and selling of products. What do you think marketing is?
If Victoria Beckham’s high-end women’s fashion was for sale on a market stall, would you be suspicious? Why? Explore the links and articles below, then be prepared to discuss the importance of an appropriate marketing mix. Remember, marketing mix comprises product, price, promotion and place.
New York Fashion Week is just a day away and Victoria Beckham has not received the fashion collections from her designers. What do you think went wrong here? Is there one specific department (business function) to be blamed? What does this tell you about the relationship between marketing and other business functions?
Marketing and its relationships btw businesses and their customers: Needs: the essential necessities that all humans must have to survive: food, shelter, warmth and water. Wants: human desires Marketing: exists to adress people's need and wants. The marketing department tends to have 4 main objectives:
Ensure that the right products are supplied to fulfill the needs and wants of customers
Set the correct price so that customers can afford to buy the products
Distribute/ place the products conveniently for customers to buy the products
Ensure that there is adequate and effective promotion to convince customers to buy the firm's products
Important examples and notes for this section of the course: Marketing is all about getting the RIGHT (product to customer to the time - all should be RIGHT) Concerns with the 4 p`s - (Price, product, promotion, place) And additional 3 to the marketing mix which are (people, process and physical evidence) Product orientation is a key element which must take place before delivering the actual product to the customers Importance of Commercial Marketing: determine consumer needs and wants, Importance of Social Marketing: to influence a positive change to human behavior Markering size looks at total sales of a firm and its share in a total market Main marketing objective for profit organizations is to identify, design, and strategies for profit to the business Main marketing strategy to for Non-profit organizations is to makert for "social" reasons
Note: Marketing is a very essential process involved with almost every company in the world because it is how companies can show the people what they have to offer.
KEY TERMS - Market Size: the total sales of all firms in a market - Market Growth: the percentage change in the total market size over a period of time - Market Leader: a firm with the highest market share in a given market Source: Business Management Textbook~ page 254
Innovation & marketing: Marketing strategies change just like many other things in businesses. Companies have to make adjustments based on what works for them and what doesn't. Changing things up also keeps customer interested. Here is a visual representation of how Google has changed over the years to stay on top for so long:
external image innovation_google.png
Feb. 9:
Go over test
Prep for the 12th grade presentation which are today at 10:00-10:20.
Here is the document on all of the growth strategies. It includes definitions and pros and cons.
Each student come to class with one or two questions about material that you do not feel 100% comfortable with and then one or two topics that you feel very comfortable with.
February 2: The rest of the presentations are due: Randy, Thomas, Lily, Christine, Toño
Give feedback and make the presentations even stronger for the 12th grade.
Ask any questions for the test.
January 31: Presentation from Jon about his company and their growth.
Present your creative definitions to Miss Amy. Check your email for definitions and advantages and disadvantages.
These will be graded on: Creativity: The information is presented in a creative way, is new, unique and surprising. It shows thoughtful planning and presents the definition in a clever and surprising way.
Content: The definition of the word is correct. The advantages and disadvantages of the growth strategy are clearly outlined for the listener.
Ease of remembering information: The listener is engaged and learns something from your presentation, then can repeat it back to you.
There will be a unit 1 test next Tuesday. It will be a 70 minute IB case study exam that will cover everything that we have studied up until this point in the course. Start studying now!
January 27: Presentation about globalization from Marco P., Manuel, Toño and Santiago
Objective:
Students will be able to explain how a firm's size can be measured.
Students will understand the different growth strategies of a business.
Students will consider how to measure the size of a business. Spider diagram on board.
Vocabulary for today:
Key terms in business growth
Internal growth Thomas
External growth Manuel
Horizontal Integration Jade
Vertical Integration Melodie
Forward Vertical Integration Paquette
Backward Vertical Integration Santiago
Merger Lily
Acquisition or Takeover Toño
Joint Venture Randy
Franchise Christine
Strategic Alliance Joustinne
Homework: Each student will receive a word and define first. Then each student will create a rap, song, mnemonic device for the 12th grade to help them remember the terms during their test. Due Tuesdsay.
January 26:
Presentations about globalization.
Growth strategies for business.
Potential Advantages of small and large businesses
Small businesses
Large businesses
Can be managed and controlled by the owners
Often able to adapt quickly to meet changing customer needs
Offer personal service to customers
Find it easier to know each worker and their needs
Average costs may be low due to no diseconomies of scale
and low overhead
Easier communication with workers and customers
Can afford to employ specialist managers
Benefit from cost reductions associated with large scale production
May be able to set prices that other firms have to follow
Have access to several different sources of finance
May be diversified in several markets and products, so risks are spread
More likely to be able to afford research and development into new products
and processes.
Potential Disadvantages of small and large businesses
Small Businesses
Large Businesses
May have limited sources of finance
May find the owner(s) has to carry a large burden of responsibility
if unable to afford to employ specialist managers
May not be as diversified, so there are greater risks of negative
impact from external change
Unlikely to benefit from economies of scale
May be difficult to manage, especially if they are geographically spread out
May have potential cost increases associated with large scale production
May suffer from slow decision-making and poor communication (diseconomies of
scale)
Divorce of ownership from control that can lead to conflicting objectives
Why do business want to grow?
1. Increased profits
2. Increased market share
3. Increased economies of scale
4. Increased power and status of the owners and directors
Create a game that will help your classmates understand the terms above. Utilize the resources that I have given to understand the words and some examples. You will need to create an account to make the game.
Internal Growth: When a business grows organically, using it's own capabilities and resources to increase the scale of its operations and sales revenue.
Changing prices
Effective promotion
Producing improved and better products
Improved training and development
Sell more through a larger distribution network
Offer preferential credit
External Growth: Occurs through dealings with outside organizations. Such growth usually comees in the form of mergers or alliances with other firms. Mergers and Acquisitions are collectively known as integration of firms.
Merger: Two firms agree to form a company. Disney bought Pixar for $7.4 billion.
Benefits
Drawbacks
Greater Market Share
Redundancies
Economics of Scale
Conflict
Synergy
Culture clash
Survival
Loss of Control
Diversification
Diseconomies of scale
Regulatory problems
Acquisitions occur when a company buys a controlling interest in another firm. That means it buys enough shares in the target business to hold a majority stake. YouTube was acquired by Google for $1.65 billion in 2006 (takeovers) Josue
Joint Venture: This occurs when 2 or more businesses split costs, risks, control and rewards of a business project. Coca-Cola bought San Miguel bottling plant in the Philippines. Conrad
Strategic Alliances: This is similar to a joint venture in that 2 or more businesses cooperate in a business venture for mutual benefit. Star Alliance was set up by the airlines Lufthansa, Scandinavian Airlines, Thai Airways, United Airlines and Air Canada who all share the costs and benefits of airline operations. Keivan
Franchising: A form of business ownership whereby a person or business buys a license to trade using another firm's name, logos, brands and trademarks. In return for this benefit the franchise pays a license fee to the parent company of the business. Subway is an example. Ariel
January 24: Vocabulary test. Objective: Students will understand globalization by looking through the eyes of corporations, food, music and noise. They will be able to define the concept and critically think about the impacts of globalization.
Start with the first 2 questions. After reading through 2 of the sections on globalization answer them with the information that you read. Then move on to question 3 and 4. After reading 2 more of the articles answer and evaluate with the knowledge that you bring to the table and information that you have read.
1. Which 2 ways of knowing are more useful than the others when trying to understand the process of globalization and its effects? Why did you choose them? Language, Sense perception, Emotion, Reason, Imagination, Faith, Intuition and Memory.
2. To what extent is our knowledge of complex phenomena such as globalization dependent on our particular perspective? 3. How can we evaluate the benefits and drawbacks of globalization given the multitude of stakeholders influenced by it? 4. Does globalization unify our values, beliefs and knowledge or lead to their greater fragmentation?
Globalization can be defined as the growing integration and interdependence of the world's economies. It has caused national economies to integrate towards a single global economy, where consumers have ever-increasingly similar habits and tastes.
Increased competition because businesses are not competing with other businesses from around the world.
Meeting customers expectations has become more difficult because there is greater demand for quality. Also, the internet and social media have made it easier for customers to either praise or complain about companies.
Increased customer base. There are now vast opportunities for businesses to trade with other countries.
Economies of Scale: Businesses that are able to build a a global presence can benefit from economies of scale, such as the advantages of global marketing economies and risk-bearing economies of scale.
Greater choice of location. Where to produce goods helps businesses cut costs on labor.
External growth strategies: Mergers, Acquisitions, Strategic Alliances and Joint Ventures allow businesses to grow at a faster pace.
'Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.' http://www.globalization101.org
January 19:
Economies of Scale: the lower average cost of production as a firm operates on a larger scale due to an improvement in productive efficiency.
Types of Internal Economies of Scale:
1. Technical economies-Large firms can use sophisticated machinery to produce their products.
2. Financial economies-Large firms can borrow massive sums of money at lower interest rates.
3. Managerial economies-In smaller businesses, managers need to wear many hats or do many jobs. But people are not great at everything (usually) so larger businesses can have specialized managers that leads to higher output.
4. Marketing economies-Large firms can benefit from lower average costs of advertising because they can use the same marketing campaign across the world.
5. Purchasing economies-Large firms can lower their average costs by buying resources in bulk.
6. Risk-bearing economies-Conglomerates can spread their fixed costs such as advertising or research and development across a wide range of operations.
External economies of scale:
Technological progress increases productivity within an industry.
Improved transportation networks help ensure prompt deliveries and employees are on time to work and cars last longer.
An abundance of skilled labor that exists in a local area helps businesses recruit and hire.
Diseconomies of scale: the result of higher unit costs as a firm continues to increase in size. Internal diseconomies of scale
Reasons for Internal Diseconomies of Scale:
1. Communication problems
2. Alienation of workforce either through lack of advancement, boredom or procrastination.
3. Poor coordination and decision-making (bureaucracy)
Reasons for External Diseconomies of Scale:
1. Too many businesses in a small area can cause an increase in rents because land becomes scarce. (NYC)
2. Workers have more choice in who they work for so there could be wage increases and financial rewards, leading to higher average costs of production.
3. Traffic congestion results from too many businesses in one area. Deliveries are delayed, employees are delayed.
January 19:Stakeholder mapping about YOUR brand due at the beginning of class.
Stakeholder mapping: Identify stakeholders in your life. Place in a quadrant of the stakeholder mapping grid below. Create a strategic plan to work with your stakeholders in the upcoming months that will be most beneficial for YOUR brand.
Also, final STEEPLE analysis is due at 10:00pm tonight. Questions to answer for analysis: Look at the opportunities that you have identified. How can you open up new opportunities based on these points? Are there new markets that can be opened? Are there new production methods that are identified? Are there new products that will fit into your product line? Look at the threats that you have identified. How can you minimize their impact? What will you do to change your organization to mitigate their effect?
January 17: Vocabulary test. Define and use in a sentence.
Stakeholder
STEEPLE analysis
Market Segment
Return STEEPLE analysis homework. Answer any questions I might have had and return on Friday with analysis.
Questions to answer for analysis:
Look at the opportunities that you have identified. How can you open up new opportunities based on these points? Are there new markets that can be opened? Are there new production methods that are identified? Are there new products that will fit into your product line?
Look at the threats that you have identified. How can you minimize their impact? What will you do to change your organization to mitigate their effect?
Stakeholder mapping: Identify stakeholders in your life. Place in a quadrant of the stakeholder mapping grid below. Create a strategic plan to work with your stakeholders in the upcoming months that will be most beneficial for YOUR brand.
January 12: Objective: Understand the interests of internal and external stakeholders.
Understand where there are possible areas of mutual benefit and conflict between stakeholders' interests.
Vocabulary: Stakeholders: any person or organization with a direct interest in, and is affected by, the activities and performance of a business.
Internal Stakeholders: members of the organization, i.e. the employees, managers, directors and shareholders of the organization.
External Stakeholders: customers, suppliers, pressure groups, government, and competitors.
Stakeholder Conflict: Conflict arises because a business cannot simultaneously meet the needs of all its stakeholders.
Spark: Remember the VW scandal. Make a list of the different stakeholders for that are involved.
Each student has a stakeholder role that is on their shirts. They will walk around the room interacting with the other stakeholders of VW and decide if there is a conflict between them after the crisis or if they are working on the same page. Stand up and give your biggest conflict and explain the source of your conflict.
Conflict happens because a business cannot simultaneously meet the needs of all its stakeholders.
Businesses should look at 3 key issues when dealing with stakeholder conflicts:
1)The aims and objectives of the business.
2) The type of organization that they are dealing with. (Partnership, non-profit, limited corporation)
3)The source and degree of power (influence) of each stakeholder group.
In a team, write a script that involves at least two stakeholders. You are NOT allowed to use the category of the stakeholders as names to identify them. That will be the job of your classmates to figure out. In the script, you will need to communicate the main interests of each stakeholder and depict at least one conflict that emerges from their main interests. You will show your play tomorrow at the beginning of class.
1. Identify the stakeholders. example: shareholders and customers 2. Discuss the conflict. Write a detailed paragraph discussing the conflict from both sides. 3. Recommend a solution to overcome one of the conflicts that you have identified in one of the dramas
4. Lastly, complete a self-evaluation of your work that reflects on the following points:
What have you learned about your ability to understand and analyze different conflicts?
How can you improve next time?
How well did you collaborate with your team, if applicable?
January 10:
Finish whip around the room from technology assignment.
How to answer a case study.
Objective: After this lesson, students will be able to understand the steps necessary to clearly and efficiently answer a case study using business vocabulary and tools.
Vocabulary: Stakeholder: individuals or organizations that have a direct interest (stake) in the activities and performance of a business; exampes include employees, unions, customers, investors, managers, customers, and government. Internal stakeholder: members of the organization; examples include employees, investors, managers. External stakeholder: do not form a part of the organization but have a direct interest or involvement in the actions of the organization; examples include suppliers, government, customers, community members.
When answering a case study:
1. Identify the problem or issue. This section should be clearly identified in the introductory sentences utilizing specific references to the case study text. What business function will be involved in creating a solution to the issue, i.e. managerial, financial, marketing, operations, human resources.
Underline where you identified the problem.
2. Identify key Stakeholders and their Perspective.
- (A) Identify key stakeholders.
- (B) Describe their interests based on the problem or issue.
- (C) Describe their interests based on their perspective (are they a customer, stockholder, manager, employee, etc.?)
- (D) Then, evaluate both their perspectives and interests.
Circle the key stakeholders. But an * by their interests. Who has been affected by this change in demographic? Make a list.
3. Apply business analytical tools to solve the problems or issues. Use analytical tools learned in class in order to solve the issues above. What tools will help you organize your information about the business? highlight the demographics that have been used in your case study, now how are they affected?
4. Create an analysis and an evaluation: Using the tools that you have chosen above, present an analysis based on the information that you have gathered. Your evaluation of the issue will be supported by this evidence. Circle the businesses that will be most affected by your demographic.
Groups for this class:
Jade, Marco P. Christine, Lily
Santiago, Joustinne, Toño
Randy, Manuel, Thomas, Melodie
January 5:
Homework: Due Thursday at 10:00pm. Look at the example below. For this assignment, just the bullet point under each category are necessary.
STEEPLE analysis of your CUEGIS company. (Change, Culture, Ethics, Globalization, Innovation, Strategy) Step 1 Research the business environment in the home country of your business.
Does your country encourage business development?
Do you have any contacts (family, friends, friends of family), who works in this country?
What interesting business articles have you read about business in the country?
Step 2
Research your country in the following ways:
Visit government websites.
Interview somebody from the country.
Find news articles about the country and relevant external factors.
Note: Your research must be recent (within the last year) because you are analyzing the current position of the organization.
Step 3
Write a STEEPLE analysis about your CUEGIS company using your research.
New working practices i.e. working from home, video calls, online advertising
Increased productivity
Quicker product development time
Job creation
New products and new markets
Speed of access to information
Reducing language and cultural barriers
Reduced costs
Location is less important and geographical barriers are reduced
Threats
Technology is not always reliable or secure
Short product life cycles
Because of shorter life cycles it is more expensive to update
Job losses
Price transparency
Online crime
Higher production costs
Reduced productivity
Activity: Look at the list of opportunities and come up with examples of companies (or their products) that have benefited from the new technology. Now look at the Threats and think of companies (or their products) that have had to deal with these threats.
CASE STUDY: Nintendo and Apple
Environmental Factors: Some examples: air and noise pollution, packaging waste, smoking and carbon footprint.
Social attitudes about the environment have changed and businesses need to change with these attitudes. Examples: VW
The weather and seasonal changes can present opportunities and threats. Examples: rain could affect park entrances at Walt Disney World.
Health scares and epidemics such as the bird flu in Asia in 2006.
Legal factors:
Legislation that is imposed by the government enacted through laws and regulations.
Consumer protection legislation. Example: Car seats for children.
Employee protection legislation. Example: National minimum wage laws.
Competition legislation. Example: Copyright and patent laws and antimonopoly laws.
Social and environmental laws. Example: RTV.
Ethical factors:
Choosing to be ethical and socially responsible can bring benefits, but there are also compliance costs involved with such decisions.
Threats:
Financial costs with compliance with changing morals and values of a society.
Opportunities include:
Attracting and retaining good quality workers
Attract new customers and retaining existing ones
Social responsibility generates good publicity and public relations
Amoy Food, one of Hong Kong's oldest food brands, was charged fro false advertising, claiming in its advertising and packaging that its sauce products were free of monosodium glutamate (MSG). The Food and Environmental Hygiene Department found traces of MSG, an artificial flavor enhancer, in the company's oyster and soy sauce products. Hong Kong laws impose a maximum penalty of HK$50,000 ($6495) and six months in jail for anyone convicted of issuing false labeling and advertisements of food products. Amoy has been the best-selling brand in Hong Kong and Britain since 1994 and 1998 respectively.
1. Economic growth is the increase in a country's economic activity over time. It is measured by the change in value of the economy's total output (known as the gross domestic product or GDP) per year https://www.youtube.com/watch?v=HEjpLZ-NnNA
The business cycle:
There is a boom where the level of economic activity rises with consumer expenditure, investment and export earnings all increasing.
There then is a recession where there is a fall in GDP for 2 consecutive quarters.
Then the trough or slump refers to the bottom of a recession and the last stage of decline in the business cycle. This is where there is high unemployment alongside very low levels of consumer spending, investment and export earnings.
After that, the recovery occurs when the level of GDP rises again.
2. Controlled inflation https://www.youtube.com/watch?v=Vi3Q1ypNw3M
Inflation: the continual rise in the level of prices in an economy. Most economists regard low and stable inflation as a prerequisite to achieving the other 3 government objectives, so it is an absolute priority for economic prosperity.
Deflation: the decrease in the level of prices in an economy.
3. Reduced unemployment
4. A healthy international trade balance https://www.youtube.com/watch?v=Ah1fEYjR-1Q
Activity: Think of one positive and one negative of the list below for businesses.
Examples:
Growing support for environmental protection.
Change in the roles of women.
Multiculturalism.
Ethics and CSR
Demographic changes.
Language.
Market segments: a distinct group of customers with similar characteristics (like age or gender) and similar wants and needs. By dividng a market into segments it is easier to analyze which groups of customers buy the product and then to target these customers more specifically.
Homework Using the card that you have been given: Find a company that directly markets their main product to this demographic. Give an example of why you think that is the demographic that they target. How does your business connect with their customer? Are there ways that they can find and extension to their products that targets another demographic? Make sure to have a visual to show the product (think marketing tool) that shows how they market to their demographic. Then answer and post your visual on a google doc. Questions? Check with me.
CASE STUDY:
Comment on how the following demographic changes present both opportunities and threats to businesses.
a) A growing number of self-employed people.
b) An increasing number of single parent families
c) Adults choosing to have fewer children and at a later stage in life.
d) An increasing number of people graduate with university degrees.
4 marks for each.
November 17:
Is an increase in interest rates a threat or an opportunity to your business? Why?
November 29: Short case study to start class and then practice the presentation for Corynne which will happen on Thursday.
November 22: Homework: SWOT analysis due when you walk into class as a group.
In class today, you will practice sharing your SWOT analysis of Frijoles Locos. We are going to ask Corynne to come to school one day before vacation and you will present directly to her so we need to practice.
November 18: SWOT analysis of Frijoles Locos
Today we will break into 3 groups that will create their own SWOT analysis. Then as a group we will combine them to write an outline for Corynne.
First:
Fill out the grid with information from yesterday. We are analyzing how Frijoles Locos can grow their retail business.
Be specific inside the matrix. Use only key points and issues.
Rank them in order of importance.
Keep it short - only choose the top 4 that you think are relavant.
Second:
Now relate the strengths and weaknesses to the goal of growing the retail business.
Then relate the opportunities and threats to the goal of growing the retail business.
Third: Write your analysis by answering the following questions:
1. How do you use your strengths to take advantage of the opportunities?
2. How do you overcome weaknesses preventing you from taking advantage of the opportunities?
3. How can your strengths reduce the probability of threats?
4. What can you do about your weaknesses to make the threats less likely?
Lastly: These questions will should have helped you understand your matrix.
So now develop an action plan!
November 15: Homework: Short 5 minute presentation on your articles and outside research using business vocabulary and analysis.
Thomas and Joustinne: Taxes, trade, deregulation You guys received the overview...
Jade and Marco: Taxes looking at personal and business
Christine and Toño: trade
Manuel and Randy: inflation
Melody and Santi: deregulation Just a couple quick talking points about how corporations look at the political change coming their way. These are from the comments that President-Elect Trump has made BEFORE the election. Also, it could be beneficial to look at the industry of your "CUEGIS" company. An example would be Jade looking at luxury fashion and the tax plan of Donald Trump.
Start of class: Pass out the PEST analysis form for the groups to fill in for their political analysis.
Harvard professor Francis Aguilar is thought to be the creator of PEST Analysis. He included a scanning tool called ETPS in his 1967 book, "Scanning the Business Environment." The name was later tweaked to create the current acronym. PEST Analysis is useful for four main reasons:
It helps you to spot business or personal opportunities, and it gives you advanced warning of significant threats.
It reveals the direction of change within your business environment. This helps you shape what you're doing, so that you work with change, rather than against it.
It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
PEST Analysis looks at "big picture" factors that might influence a decision, a market, or a potential new business. SWOT Analysis explores these factors at a business, product-line or product level. https://www.mindtools.com/pages/article/newTMC_09.htm
1. Economic growth is the increase in a country's economic activity over time. It is measured by the change in value of the economy's total output (known as the gross domestic product or GDP) per year https://www.youtube.com/watch?v=HEjpLZ-NnNA
The business cycle:
There is a boom where the level of economic activity rises with consumer expenditure, investment and export earnings all increasing.
There then is a recession where there is a fall in GDP for 2 consecutive quarters.
Then the trough or slump refers to the bottom of a recession and the last stage of decline in the business cycle. This is where there is high unemployment alongside very low levels of consumer spending, investment and export earnings.
After that, the recovery occurs when the level of GDP rises again.
2. Controlled inflation https://www.youtube.com/watch?v=Vi3Q1ypNw3M
Inflation: the continual rise in the level of prices in an economy. Most economists regard low and stable inflation as a prerequisite to achieving the other 3 government objectives, so it is an absolute priority for economic prosperity.
Deflation: the decrease in the level of prices in an economy.
3. Reduced unemployment
4. A healthy international trade balance https://www.youtube.com/watch?v=Ah1fEYjR-1Q
CASE STUDY:
Comment on how the following demographic changes present both opportunities and threats to businesses.
a) A growing number of self-employed people.
b) An increasing number of single parent families
c) Adults choosing to have fewer children and at a later stage in life.
d) An increasing number of people graduate with university degrees.
4 marks for each.
November 11:
STEEPLE analysis (All information is coming from Business Management by Paul Hoang 3rd edition) Social, Technological, Economic, Environmental, Political, Legal and Ethical threats and opportunities of the external business environment. These factors are beyond the control of the organization. The STEEPLE analysis is important to any business strategy. An example would be assessing the feasibility of an overseas investment project.
External factors that present chances for businesses are called opportunities.
External factors that can harm a business are called threats.
Remember that external threats are subject to rapid and unforseeable change.
The key advantage of the STEEPLE analysis is that it is simple to use. It is also useful brainstorming and discussion tool. STEEPLE analysis promotes proactive and forward thinking rather than static views based on gut feelings. (Sometimes you will not need to conduct a full STEEPLE analysis. PEST stands for Political, Economic, Social and Technological. Then Legal gets pulled into political and Environmental and Ethical are pulled into Social.)
Common political factors that affect businesses are changes in employment lawas, consumer protection laws, new environmental regualations and health and safety requirements.
Examples: They can all be opportunities and threats
Fiscal policy - use of taxation and government expenditure policies to influence business activity.
Monetary policy - use of interest rate policy to affect the money supply and exchange rates in order to influence business activity.
Deregulation - removal of government rules and regulations which constrain business activity within a particular industry.
Corruption
Tax examples: Income tax, Corporate tax, Sales tax, Capital gains tax, Inheritance tax, Excise duties, Customs duties
November 10: Final presentations for Ansoff Matrix. Randy, Manuel, Thomas, Joustinne, Marco Nov. 8:Homework is: using your CUEGIS company decide which growth strategy they have focused on in the last 2 years and how you are able to determine that. Using visuals to enhance your presentation talk for 5 minutes to introduce your company and their strategy to the class. Nov. 3:
Homework due Wednesday night at 8:00. Your analysis of your mission statement objectives and you SWOT analysis.
Market: a place where customers and suppliers trade. A market exists where there is demand for a particular product and there are businesses that supply the products. Customers can be private individuals, other businesses or governments.
Consumer markets: markets that cater to private individuals. Industiral markets or producer markets: cater to businesses and governments.
Different characteristics of a market can be:
Market size which is measured by revenue
Customer base which is measured by the total potential number of customers in a particular market. This is also a measure of market size.
Competition: The degree of rivalry within the market.
Geographic characteristics: Particular areas of the country or regions have different characteristics.
Demographic characteristics: gender, age, ethnicity and religion.
Seasonal and cyclical characteristics
Market growth rate.
Ansoff Matrix analytical tool that helps managers to choose and devise various product and market growth strategies.
Market Penetration: Low-risk
Selling existing product in existing markets: increasing market share.
Changing pricing or introducing a promotion.
Example: McDonalds Monopoly game.
Product Development: Medium-risk (Brand Development)
Selling new products in existing markets.
Example: McDonalds adding salads.
Market Development: Medium-risk
Selling existing products in new markets.
New channels of distribution or different geographical location.
Example: Nike making a different product for leisure not only sport.
Diversification: High-risk
Selling new product in new markets.
Example: Virgin is in music, airlines, communication and many other businesses. Holding company: This is a business that owns a controlling interest in other diverse companies. Virgin is a holding company.
Look up your favorite businesses and see if you can find examples of the 4 different growth strategies.
Economies of Scale: Lower average costs of production as a firm operates on a larger scale due to productive efficiency.
Average Cost (AC) = Total Costs (TC) / Quantity of output
For example: if total costs of producing 1000 shirts amounts to $8000 then the cost of each shirt is $8.
Average Costs consist of two components: Average fixed costs (AFC) and Average variable costs (AVC).
AFC is calculated by dividing the total fixed costs by the level of output, i.e. AFC = TFC / Q Similarly, AVC is calculated by dividing the total variable costs by the level of output, i.e. AVC = TVC / Q
Nov. 1: SWOT analysis final lesson.
4 corners activity.
Work on individual SWOT analysis and written paragraph using your mission statement from our Organizational Objectives unit.
Guided questions to help you complete your SWOT analysis.
Helpful hints to help you with your written analysis:
Combine your strengths and opportunities: How will you go after the opportunities presented to you using your strengths? Combine your weaknesses and opportunities: How will you overcome your weaknesses in order to go after the opportunties that you have? Combine your strengths and threats: How can you use your strengths to reduce outside threats? Combine your weaknesses and threats: Create a plan to prevent your weaknesses from making you open to outside threats.
Oct. 28:
SWOT Analysis for you!
What would you say is your greatest skill or ability?
Which academic subjects do you earn the best grades in? Which subjects do you struggle with?
What essential skills (research, social, communication, thinking, self-management) do you do best? What essential skills do you need to improve?
What do your friends or parents always compliment you on? What do your parents or guardians tell you need to improve upon?
Were you ever surprised when you were good at playing the piano or playing basketball or finishing a specific school assignment?
Homework: Utilitze the La Paz SWOT analysis to create direction for the school in the short term.
Use specific ideas from the table.
Oct. 27: SWOT analysis
SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats.
Strengths: Internal factors that are favorable compared with competitors, examples are strong brand loyalty, highly skilled workers. Strengths help the business achieve its objectives. Strengths need to be developed and protected. Weaknesses: Internal factors that are unfavorable when compared with rivals, they create competitive disadvantages. Weaknesses are therefore likely to prevent or delay the business from achieving its goals. To remain competitive, the business needs to reduce or remove its weaknesses. Opportunities: External possibilities for future development, changes in the external environment that create favorable conditions fro a business. Threats: External factors that hinder the prospects for an organization, they cause problems for the business.
Advantages
Disadvantages
Completing a SWOT analysis can be simple.
It is rather simplistic and does not demand detailed analysis.
It has a wide range of applications.
The model is static whereas the business environment is always changing, so the shelf life of SWOT is limited.
SWOT analysis helps to determine the organization's position in the market and therefore aids the formulation of business strategy for its long term survival.
The analysis is only useful if decision-makers are open about the weaknesses and willing to act upon them.
It encourages foresight and proactive thinking and decision-making.
SWOT analysis is not typically used in isolation. Better decisions are made if more information is available, so other strategic tools are also used.
It can help reduce the risks of decision-making by demanding objective and logical thought processes.
SWOT analysis for this class:
Remember, a SWOT analysis is more than just listing internal and external factors. The next step is to analyze the factors and develop some strategies that we can implement in order to make our learning experience an enjoyable and productive one. In other words, address the following questions:
How can we capitalize the strengths that our team and our teacher has to offer?
How can we overcome some of the weaknesses that come with a second-year course?
How can we exploit the opportunities that a second-year course offers?
What might be some of the threats that come with a second-year course? What can you do to reduce those threats?
Review our corporate strategy.
Strategically plan for the next step.
Assess our opportunities.
Look at competition?
What is the risk?
Strengths
Weaknesses
Unique Selling Point
Brand awareness and brand loyalty
Market share/market dominance
Corporate image and reputation
Accreditation, endorsement or support
Product quality
Geographical location
Value for money
Limited sources of revenue
Escalating costs of production
Poor cash flow/liquidity problems
Higher prices than competitors
Demotivated or unproductive workforce
Limited sources of finance
Lack of space
Restricted product range
Location
Opportunities
Threats
Economic growth
Weakening exchange rate
Technological developments/innovations
Market growth
New markets or locations
Demographic and social lifestyle changes
Government spending programs
Mergers and acquisitions
New entrants in the market place
Economic downturn (recession)
Inflation
Pressure group action or protest
Social, environmental or legal issues
Negative media coverage or publicity
Unfavorable changes in seasons and weather
Outbreak of infectious disease
SWOT Analysis for you!
What would you say is your greatest skill or ability?
Which academic subjects do you earn the best grades in? Which subjects do you struggle with?
What essential skills (research, social, communication, thinking, self-management) do you do best? What essential skills do you need to improve?
What do your friends or parents always compliment you on? What do your parents or guardians tell you need to improve upon?
Were you ever surprised when you were good at playing the piano or playing basketball or finishing a specific school assignment?
CASE STUDY
Oct. 25: Test
Oct. 21: Homework: You will have a case study test on types of organization on Tuesday.
IPO Initial Public Offering: This is when companies first issue equity or debt to the public.
Reasons to take your company public:
As long as there is market demand the public company can issue more stock, thereby raising more money.
Mergers and Acquisitions are easier to do.
These companies are more liquid and can issue stock options to potential employees, thereby attracting good quality candidates.
Another great reference that lays out the differences of for-profit social enterprises and not-for-profit social enterprises. We will address the not-for-profit side today.(Thanks to the IB Pamoja class!) This is the link to the power point I showed in class on Friday!
For-Profit Social enterprises: revenue generating businesses with social objectives at the core of their operations. These businesses want to turn a profit and provide a social service as well. These businesses make a profit or surplus but it must be retained in the business for its self-preservation and growth.
Microfinance is a type of financial or banking service targeted at individuals and groups that would otherwise have no means of accessing credit. The aim of microfinance is to allow impoverished groups and individuals the opportunity to make money and become self-sufficient.
Accessibility: Microfinance helps those in poverty to become financially independent, whereas
banks do not typically lend such small amounts to this market segment.
Immorality: Critics claim that microfinance is an unethical operation of lenders because they
are for-profit organizations that profit from the poor.
Job creation: The effective use of microfinance can help create new jobs which benefit society as a whole.
Limited finance: Microfinance schemes only offer small amounts of money to the borrowers because they are high-risk loans.
Social wellbeing: Successful applicants who receive microfinance are less likely to take their children out of school. It also allows recipients access to better health care.
Limited eligibility: Not all poor individuals quality for microfinance.
Cooperative: For-profit social enterprises owned and run by their members, such as employees or customers, with the common goal of creating value for their members by operating in a socially responsible way. All employees (members of the cooperative) have a vote and therefore contribute to teh decision-making.
Advantages
Disadvantages
Incentives to work: Employees have a large stake in the cooperative so this can
improve staff motivation and productivity.
Disincentive effects: There might not be enough members and therefore salaries and bonuses
could be low causing disincentive.
Decision-making power: employees have a say in how the business is run making employees more committed.
Limited sources of finance: They can not raise money by going public. Contributions from the members are
the best way to raise funds.
Social Benefits: Cooperatives are run on socially responsible principles. This helps society as well the co-op members.
Slower decision making: Decisions are likely to be delayed as all members of the cooperative work in a democratic way.
Public support: A key advantage for that cooperatives is that there tends to be public support to help them succeed.
Limited promotional opportunities: Cooperatives tend to have a flatter organization structure so there are fewer opportunities for promotions.
Public sector company: A business enterprise owned and controlled by the state - also known as nationalized industry.
Public Private Partnership PPP: Involvement of the private sector, in the form of management expertise and/or financial investment, in public sector projects aimed at benefiting the public.
Non-profit organization: Any organization that has aims other than making and distributing profit and which is usually governed by a voluntary board. Non-profit organizations use their surplus revenues to achieve their social goals rather than distributing them as profits or revenues. Examples: public libraries, museums, government hospitals, social services such as the Red Cross, Oxfam.
Non-governmental organization (NGO): a legally constituted body with no participation or representation of any government with the same aims as a NPO. These operate in the private sector and are run for the benefit of others in the society. Example: UNICEF. https://www.youtube.com/watch?v=PCxJ1Ug0v6s
An NGO is an association of person; that works for promoting humanitarian or cooperative objective instead of a commercial one. On the other hand, the NPO is an organization which is set up to promote art, science, education or any other social or cultural purpose; that intends to use its profit in the promotion of its objectives instead of dividing it among the members.
Charity: A non-profit social enterprise that provides voluntary support for good causes such as the protection of children, animals and the natural environment. Its key function is raising money from individuals and organizations to support a cause that is beneficial to society. Example: World Wildlife Fund.
Exam tip: Although charities are not-for-profit social enterprises, this does not mean that they do not strive to make a surplus. The extra money is not classified as "profit" because it does not get distributed to the owners or taxed by the government but is reinvested in the charity.
Where would you work? What will you change/develop? How will your idea help the school? What actions will you take? How will you measure success? How can your teachers and administrators empower you to be an intrapreneur?
Sole trader: a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits. Partnership: a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities. Private limited company: a small to medium sized business that is owned by shareholders. This company cannot sell shares to the general public. Because the shares cannot be traded without the agreement of the Board of Directors, the directors maintain overall control of the company. Public limited company: a limited company, often a large business, with the legal rights to sell shares to the general public. Its share price is quoted on the national stock exchange. They have completed an IPO and use this to raise large sums of financing. The management is different than the owners and sometimes their goals can conflict. Shareholders vote at the Annual General Meeting on re-election of the board of directors and approve the previous year's financial accounts after the directors present the annual report containing information about the company's performance.
October 11:
Use word clouds to find other departments that use the same words.
Compare your word clouds. Each student has a word cloud.
Find someone from another group that has the same word that you have in your word cloud. Create a visual map on the piece of paper in front of you. Why does this word overlap in the departments? What are the connections that you can make between departments? How can you use those connections to improve a business?
Why start a new business? External and internal factors.
1. Losing a job may provide the needed push.
2. Desire for more independence.
3. Financial security.
4. Identification of a market opportunity.
5. Social connections may encourage and facilitate the move.
6. Having a risk-taking or challenge-seeking personality.
PROBLEMS FACED BY START-UPS
Even if an entrepreneur has all of the right qualities, success with a new business can never be guaranteed. many businesses fail during the first year of operation, because of:
1. Competition
2. Building a customer base (You have to pull people away from the better known brands)
3. Lack of record keeping
4. Lack of working capital
5. Poor management skills
6. Changes in the business environment
Business Plan: This is the document that details how a business sets out to achieve its goals and objectives. It is useful because the owner needs to explain how it will market, finance and structure the employees of the business. It will also help to reassure the financial lenders. Elements of the business plan are as follows:
What is the business such as name, where it is located, who is the owner and their background, legal structure of business, goals and objectives. The product and why it will be something that people want to buy including pricing and cost of production etc. The market that the business will fall under along with competitor analysis. The finance including how it will be funded, break-even analysis, forecasts of revenue and cash flow and return on investment. The human factor including how many people will work for the company, organizational structure and wages. The marketing including market research, unique selling point and promotional ideas.
Watch the video and identify T Charts what the positives and negatives are when it comes to legal types of businesses.
Types of businesses
Sole trader: a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits. Partnership: a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities. Private limited company: a small to medium sized business that is owned by shareholders. This company cannot sell shares to the general public. Public limited company: a limited company, often a large business, with the legal rights to sell shares to the general public. Its share price is quoted on the national stock exchange.
Objective: For students to understand the 4 functional departments of a business and how they work together.
Four functional departments of business:
Marketing: The department that is responsible for market research and for analyzing the results of such research so that consumer wants can be correctly identified. This information will then be discussed with other departments of the business so that the right product decisions are made. Once a product is available for sale, the marketing function will have to make important decisions concerning its pricing, how and where to promote it and how to sell it and distribute it for sale. Toño, Santiago
Finance: This function has responsibility for monitoring the flow of finance into and out of the business, keeping and analyzing accounts and providing financial information to both senior management and other departments. Without adequate finance, no effective decisions can be made within the other functional areas, so finance is a key division of any business. Christine, Jade, Joustinne
Human Resources: Human Resource (HR) management identifies the workforce needs of the business, recruits, selects and trains appropriate staff and provides motivational systems to help retain staff and encourage them to work productively. It also draws up contracts of employment and covers the redundancy or redeployment of staff if these become necessary. Thomas, Marco
Operations: Operations has the responsibility for ensuring adequate resources are available for production, maintaining production and quality levels and achieving high levels of productive efficiency. Melodie, Randy, Manuel
Each of you to create a word cloud with words that you research from the internet to define your function.
http://www.wordclouds.com Ok. After making you all do that for homework, Randy told me it was not working so I found a different web site and you don't even have to make an account. Sorry about that!
Find words that overlap with another department and talk about ways that these people need to communicate in a business.
Why start a new business? External and internal factors.
1. Losing a job may provide the needed push.
2. Desire for more independence.
3. Financial security.
4. Identification of a market opportunity.
5. Social connections may encourage and facilitate the move.
6. Having a risk-taking or challenge-seeking personality.
PROBLEMS FACED BY START-UPS
Even if an entrepreneur has all of the right qualities, success with a new business can never be guaranteed. many businesses fail during the first year of operation, because of:
1. Competition
2. Building a customer base (You have to pull people away from the better known brands)
3. Lack of record keeping
4. Lack of working capital
5. Poor management skills
6. Changes in the business environment
October 4:
Objective: Students will understand and be able to identify the sectors of the economy.
Choose 5 countries based on your interest. (You click on the country on the map in order to have their information displayed.)
Open up the Economy tab in the list below the map and the flag.
Read the information about the economy of your countries. Then look at the GDP (Gross Domestic Product) of the country. In what sectors do they make the majority of their income? Look at the Labor section of the economy. Where does the population work? Bring this information to class.
During class, we will be moving to the corner that best describes the economy in your countries of choice. Be prepared to tell your classmates about your countries. Each student will describe a country to their partner and their partner will share the findings to the class.
We will play a relay race game with the sectors and then have a wrap up check for understanding "quiz".
Relay teams:
Melodie, Thomas, Marco P., Santiago
Christine, Thomas, Manuel, Joustinne
Jade, Manuel, Toño
Sept. 30:
Objective: The students will understand and be able to identify the 4 sectors of the economy.
Sectors of the economy:
Primary: firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms.
Secondary: firms that manufacture and process products from natural resources, including computers, brewing, baking, clothing and construction.
Tertiary: firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications.
Quaternary:services involving complex processing and handling of information: education and research, engineering, IT specialist, etc.
Finishing up our lesson on command terms.
Use your Bloom's Taxonomy chart to write questions using the command terms on the following case studies.
Sept. 27: Corporate Social Responsibility Wrap up today.
We will be commenting on 3 ideas:
Businesses have a positive impact on society and the environment.
Businesses have an impact on society and the environment.
Businesses have a negative impact on society and environment.
Groups of 5 to read and talk about what was on the board.
3 questions:
Questions after the exercise: Define CSR.
Compare and Contrast the ideas that are on the board. How do they reveal ways to encourage businesses to adopt ethical and socially responsible objectives?
Recommend to a board of directors whether or not to work towards being seen as “the leading multinational in economic, social and environmental responsibility.”
We will look at the command terms for the course and plot them on the Bloom's Taxonomy chart. This will help us understand the case study tests that you will be expected to answer over the duration of the course.
Sept. 20: All students present their articles from their research for homework credit.
Objective: The students will be able to understand the benefits and drawbacks of CSR by looking at a real world example.
Brainstorm the benefits and drawbacks of Corporate Social Responsibility.
In the TED talk by Michael Porter and TIME magazine article, you came across lots of examples of how companies have embraced corporate social responsibility and have adopted an 'ethical code' in decision-making. For the next exercise, we are going to look at Volkswagon, a company that was perceived to be a great CSR company, but was found to be lacking. Toms, a company that started with the intention to combine CSR with a for profit organization and with CS
Group 1: Manuel, Joustinne, Thomas Using your research skills, create a presentation that introduces VW as a brand before Sept. 2015. Discuss the perception of the brand before the diesel scandal by their employees, their shareholders, and their customers. What were their organizational objectives? Teach the rest of the class about their place in the global economy. Besides the questions above here are some other questions that might help you:
VW is a public limited company. Define what that means. Does this create an atmosphere of unethical objectives? How did VW capitalize on their "clean diesel" initiative? Why was VW considered one of the world's most socially responsible companies? What was VW's financial standing before the scandal? Can you find some examples of marketing from before the scandal? What are some of the benefits of CSR for their company? What are some of the drawbacks?
Group 2: Santiago, Jade, Marco P., Christopher Using your research skills, create a presentation that explains VW's diesel scandal to the class. What ethical decisions were made and talk about how they affected their stakeholders both internally and externally by making the decisions that they did.
Why did VW manipulate their exhaust system? How do we know that they manipulated their exhaust system? What were the financial costs of this scandal? What were the legal ramifications of the scandal? Can you find some examples of marketing after the scandal? What are some of the benefits of CSR for their company? What are some of the drawbacks?
Group 3: Christopher, Toño, Melodie
Using your research skills, create a presentation about the company Toms. What kind of company are they? What do they sell? What are their Organizational Objectives? What is the perception of customers, shareholders, and suppliers. Come up with some other questions that will show the benefits and drawbacks for CSR for their company.
Group 4: Randy and Christine
Using your research skills, create a presentation about the company Halliburton. What kind of company are they? What do they do and what do they do well? What are their financials? What are their Organizational Objectives? What is the perception of customers, shareholders and other stakeholders? Come up with some other questions that will show the benefits and drawbacks of CSR for their company.
Sept. 13: Article and blog post are due to me by 10:00pm on Sunday Sept. 11 by email.
Objective: To understand and use the concepts that will be taught throughout the course by making connections to a real world organization through looking at Organizational Objectives. (Change, Strategy, Culture, Ethics, Innovation, Globalization.) Vocabulary: Stakeholder, Corporate Social Responsibility (CSR)
We will evaluate the articles that you sent in last night. I received everyones except Jade's and Manuel's.
What you are looking for:
Does the blog post demonstrate a good understanding of at least one of the business concepts?
Is relevant business management content applied effectively to explain the situation?
Are relevant, balanced arguments provided with justification?
Is the post easy to follow and well structured containing an introduction, body, conclusion, and fit-for-purpose paragraphs?
Does the post consider a range of individual and group perspectives?
STAKEHOLDER is any person or organization with a direct interest in, and is affected by, the activities and performance of a business: examples: customers, suppliers, pressure groups, competitors, government. INTERNAL STAKEHOLDER: any member of the organization: examples: managers, employees, directors and shareholders.
Corporate Social Responsibility
On 11th December 2012, one of the world’s leading reputation management consultant firms, the Reputation Institute, announced that 'Microsoft ranked number one (Links to an external site.) for corporate social responsibility'. Should businesses be solely concerned with making profits for their shareholders or should businesses also recognize the needs of other stakeholders, such as employees, suppliers and members of the community? When a business recognizes that it has legal and moral responsibilities to stakeholders other than investors, it is said to be practicing corporate social responsibility (CSR). This growing acceptance of CSR has led to businesses adopting an ‘ethical code’ in their decisions.
Step 1
Individually, brainstorm a list of at least five core values of an ethical business person.
Step 2 Groups:
Manuel, Thomas, Jade, Marco P.
Christine, Randy, Christopher, Melodie
Joustinne, Santiago, Toño
Share these traits with your group. As you chat with your teammates about the lists, consider these TOK links:
How does culture affect this list?
Are there any shared values across cultures?
Consolidate and agree on the five most important traits and create a team list.
In the above video and TIME magazine article, you came across lots of examples of how companies have embraced corporate social responsibility and have adopted an 'ethical code' in decision-making. Examples of companies who have done this include:
Coca-Cola, through its 5 by 20 program aimed at empowering women entrepreneurs.
Visa, who used its electronic and mobile payment systems in developing countries.
Cisco, who trained four million people in I.T. skills.
Using your research skills, find an example of Volkswagen's ethical objectives and talk about how they affected their stakeholders both internally and externally by making the decisions that they did. Find a stakeholder conflict that happened because of the decisions made by some in the organization.
With reference to one or two organizations you have studied, examine the role of innovation in possible growth strategies.
In my article about Apple and the new iPhone that is coming out this week, I found that innovation was a large part of their corporate culture. One of the objectives that Apple has set for themselves to "innovate and dictate the movement for further technology". This is shown by eliminating the port for headphones on the new iPhone that is being released this week. As the article tells us, Apple has eliminated or changed ports in the past with some success. They have made sure to be at the forefront of the technology sector by setting the trends in the market and foreseeing where the market is going.
They have used product innovation in this example to increase sales, stake their claim as a product leader, and to differentiate themselves from the rest of the phone industry. They have also created a need for new accessories such as wireless headphones. This is a way that they use innovation to drive accessory sales but to also create a shift in listening habits throughout the world.
There is usually push back from the consumer at first because they are not used to the new technology or they do not own the accessories necessary to use the product. However, because of the market share that Apple commands, they are able to persuade consumers that they are right. Their influence as a company has been tested so they are perceived as the leader in their sector.
This is just one relevant example of Apple using its innovation to drive sales and continue to push technology in a new direction.
Change- Christopher and Santiago
Culture- Melodie and Joustinne
Ethics- Randy and Christine and Marco
Globalization- Manuel and Jade
Strategy- Thomas and Toño
Find an article that discusses organizational structure from the last 2 years about a real world company that uses the concept that your team has been given above. Consider the requirements below.
During this trimester, every other week you will upload an article and a blog (about 3 paragraphs), you will develop a Business and Management lens through which you view a current business article of interest related to the topics that we are covering and at least one of the business concepts (culture, change, ethics, globalization, and innovation)
These Blogs will be an extension of the classroom and you will be using this as a vehicle for reflection, reading, writing, collaboration and critical thinking.
We will be using Paper 2 Section C criteria which is as follows:
Section C
The principal focus of questions in this section is on the concepts of change, culture, ethics, globalization, innovation and strategy that underpin the business management course.
While the principal focus for each question is on two of the concepts, students need to draw on their knowledge of other relevant topics in the syllabus.
There is no stimulus material provided for the questions.
Students are required to address the question in relation to at least one real-world organization but may use information from a range of sources, which may include real-world case studies examined in class and IA research. The real-world organization that students use in their responses must not be the case study organization featured in paper 1.
The response should consider the perspectives of individuals and societies on which the real-world organization impacts.
Students answer one extended response question from a choice of three.
Assessment objective level 3 (AO3) command terms are used in the questions.
The questions require: knowledge and understanding; application and analysis; synthesis and evaluation; and a variety of appropriate skills.
Each question is worth 20 marks.
Section C is worth a total of 20 marks.
For section C, marks are allocated using assessment criteria. Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria.
Overall, the maximum for paper 2 is 50 marks.
Sept. 6:
Homework: Put your mission statement and SMART goals on the google doc that Jade sent out today during class. This is due before class on Thursday.
Aims, objectives, strategies and tactics are the key terms we will investigate in this lesson. Corporate aims are the long-term goals that a business hopes to achieve. Vision and mission statements give an organization a sense of purpose.
Objectives are the specific ends that the organization must achieve to carry on its mission. Once objectives that reflect the organization's overall goals have been established, management must choose a strategy to achieve them. A strategy provides the framework for the overall action of the organization, nothing could be achieved without outlining the tactics. Tactics refer to the day-to-day functioning of certain business operations.
Organizational Aims
Common Objectives for Companies: Profit Maximisation: Production at the level of output where the greatest positive difference between total revenue and total cost is achieved. Profit Satisficing: Aiming to achieve enough profit to keep the owners happy but not aiming to work flat out to make as much profit as possible. Growth: Could be the growth of sales or value of output. Increasing Market Share: The growth of a business in its market.
Factors Determining Corporate Objectives: Corporate Culture: Code of behavior and attitudes that influence the decision-making styles of the managers and other employees of the business. Size and legal structure of a business: This depends on the owners and the people that control the business. What are they looking for in return on investment? Public or private sector: Well established business vs a new business: New businesses are more likely to be driven by the desire to survive. Later the business can pursue other objectives such as profit and growth.
Key Points
MOST Analysis is a simple framework tool for analysing or planning the detail of what an organisation does.
It helps you frame questions, starting from the high-level mission of the organisation and digging right down to the detail of individual tactics.
MOST stands for: Mission, Objectives, Strategy and Tactics.
The mission of an organisation should be the answer to the question ‘What do you do?’
Objectives start with the translation of the mission into overall intent that drives the strategy process.
Strategy includes the high-level decisions that shape what is done and how.
It is important to note that business strategy is a term that can be used within the aims-objectives-strategies-tactics process, but it can also be thought of as a business concept that provides meaning and context to the other topics we will study. For example, when deciding on a particular business strategy, decision-makers must consider the marketing, human resource, and financial implications of their decision. Making connections between the individual topics we study will be necessary in order to reach the top levels of this course and is something we will be coming back to in future lessons and activities.
Sept: 2:
1. Now think of your favorite company/brand. What is their mission statement? Evaluate the usefulness of the mission statement for planning future strategies for your chosen business.
Evaluation of mission statements: Does it include?
Customers, Products and services, markets, technology, survival, philosophy, self-concept, concern for public image, employees?
Does it mention values?
Citizenship, Teamwork, Excellence, Integrity
Is it customer or product oriented?
2. Look up the La Paz Community School mission statement. Do you think that this mission statement is effective and gives employees, students and parents a good insight into the aims of the school? Our mission is to educate the culturally diverse youth of Guanacaste through bilingual experiential learning and enrichment that integrates the local community and ecology, while preparing students to become thoughtful, creative, and active stewards of their environment and world.
3. Create a mission statement for yourself. What do you want to include? Who are your stakeholders that you need to direct your communication toward? Stand and deliver for your classmates.
Miss Amy's mission statement is to provide engaging and informative instruction to the students at La Paz Community School that will ignite a love for lifelong learning and encourage students to follow their passion.
August 30:
Content objective: Students will be able to define and analyze mission statements and vision statements of different companies.
Vocabulary objective: Mission Statement: A simple declaration of the underlying purpose of an organization's existence and its core values. (What is our business?)
Vision Statement: An outline of an organization's aspirations (where it wants to be) in the distant future.
Look at the Vision and Mission Statements that have been posted around the room. Please get up and read them.
Choose one that resonates with you.
Write: Why did you choose this mission/vision statement? What words stood out to you in the text? Why?
Talk about your ideas with your partner. Then we will share as a class.
Do you think that the existence of a mission statement or visions statement influences your company's performance? If so, why?
Homework or assignments will be part of your participation grade. They will be given a pass or fail grade.
Participation in class is also a pass or fail system. Make sure to come to class, participate in all the activities, and add your voice when you have something to say.
There will be case studies throughout the trimester. These will be graded using the IB 1-7 scale.
There will be one large project with a local business. That will be graded using the La Paz 1-4 scale.
Your final case study exam will be an overview of the entire trimester and will be graded using the IB 1-7 scale.
My definitions on this page will be taken from Business and Management by Paul Hoang. This is our textbook for this class. I have 2 copies if you would like to read it anytime.
The summer break:
Read articles about businesses!
Wall Street Journal, New York Times, Harvard Business Review, Financial Times, The Economist, Bloomberg are all great publications for you to read.
If you email me with questions and comments over the break you will have extra points going into next year.
June 30:
Test
June 28:
https://docs.google.com/presentation/d/1IcBqhEZ4zUjQ7VRMlcDjC-zD9nxZgd1zXSmOeeu0fNA/edit#slide=id.g1e1ca41592_0_128
June 27:
Vocabulary:
Cost Center: a department or other unit within an organization to which costs may be charged for accounting purposes.
Revenue Stream: the amount of money that it recieves from selling a particular product or service. Turner: advertising, cable subscriptions, physical products, games, investments.
More Costs:
The second way of categorizing costs leads to two distinct types of costs - direct and indirect (or overheads) costs. It is helpful to categorize costs in this manner when preparing financial accounts (e.g. the profit and loss account), which we will cover later in this unit.
Direct Costs:
Businessdictionary.com states that direct costs are:‘An expense that can be traced directly to (or identified with) a specific cost center or cost object such as a department, process, or product.
Direct costs are often variable costs, but not always. For example, raw materials used to make a specific product would be both a variable cost and a direct cost. In contrast, the salary of a human resources manager would be considered a fixed cost, as it does not vary in the short term. However, it would be considered a direct cost because it can be traced directly to the human resources department.‘
Indirect Costs:
Businessdictionary.com states that indirect costs (or overheads) are:
‘An expense (such as for advertising, computing, maintenance, security, supervision) incurred in joint usage and, therefore, difficult to assign to or identify with a specific cost object or cost center (department, function, program). Indirect costs are usually constant for a wide range of output, and are grouped under fixed costs.
Since it is often difficult to reduce costs directly related to the production of a product, overheads can be under great scrutiny from cost-conscious businesses.‘
Exercise:
Suggest one example of a business cost (e.g. salaries, rent, utilities, raw materials, loan payments, taxes, etc.) that fit each of the following classifications. Make sure to include your reasoning.
- Variable and indirect
- Fixed and indirect
- Variable and direct
- Fixed and direct
Classify these costs:Rent, research and development, utilities, administration salaries, COGS, insurance, security, maintenance on machinery, legal expenses, shipping, import duties
June 23:
Choose one of the questions from below. Research a company and write an essay based on your findings. Due Friday June 30th.
Unit 1 questions Business Organizations and Strategy. Make sure that you understand the topics that are explored along with the concepts.
Discuss the consequences of a change in any combination of the STEEPLE factors for an organizations objectives and strategy.
With reference to one or two organizations that you have studied, discuss how ethics and change may influence organizational objectives.
With reference to one or two organizations that you have studied, examine the role of innovation in possible growth strategies.
With reference to one organization that you have studied, evaluate the impact of change and globalization on its growth.
With reference to one or two organizations that you have studied, discuss ethical considerations and the changing role and nature of CSR.
Discuss the role of ethics and innovation in the CSR of an organization that you have studied.
With reference to one or two organizations that you have studied, discuss the need for organizations to change objectives and innovate in response to changes in the internal and external environments.
With reference to a multinational company you have studied, examine how stakeholders have been impacted by change and globalization.
With reference to one or two organizations that you have studied, discuss the role of culture and ethics in the growth and evolution of organizations.
With reference to an organization, evaluate the importance of change and innovation when starting a business.
Unit 3 Questions Finance. Make sure that you understand the topics that are explored along with the concepts.
With reference to an organization, examine how ethics and globalization have impacted on its sources of finance.
Unit 4 Questions Marketing. Make sure that you understand the topics that are explored along with the concepts.
With reference to an organization, discuss strategies associated with market share in response to changes in the external environment.
With reference to an organization, discuss the implications of change and innovation on an organization's market share.
Discuss the implications of cultural differences and globalization on the international marketing for an organization of your choice.
With reference to an organization, discuss how ethics and culture influence the way firms target consumers in different markets. (target markets)
With reference to an organization, discuss how innovation and culture can differentiate an organizations products and themselves from competitors.
With reference to an organization, discuss the importance of innovation and ethics on marketing.
With reference to an organization, discuss the importance of a unique selling point as a strategy in response to change.
With reference to an organization, discuss how an organization can use market research to guide innovation and strategy.
With reference to an organization, discuss how globalization can affect an organization's pricing strategy.
With reference to an organization, discuss change and globalization considerations in an organization's branding.
With reference to an organization, discuss changes in a product's life cycle and possible extension strategies.
With reference to an organization, discuss the impact of technological innovation on promotional strategies. (viral marketing, social media marketing)
With reference to an organization, discuss strategies and the role of innovation in e-commerce.
June 21:
How to answer a CUEGIS question:
- Introduction to the essay: This can have information about the company that you are talking about and the meaning of the 1 or 2 concepts that you are addressing.
- The main body of the essay: This is 3 to 4 paragraphs.
Each paragraph should include:Main point that connects to the concept.
Main point that connects to the content.
Stakeholder affected (could be an individual or group)
Supporting evidence
- Conclusion
Summary of the main points along with an answer to the question.You will be graded on these points:
K Knowledge and conceptual understanding
A Application of the tools and concepts
R Reasoned arguments (balanced with specific examples)
S Structure of your essay. (See above)
E Individuals and Societies (Stakeholder that is affected. Can be individual or a group.)
June 20:
Breakeven analysis playground! (and maybe a tiny little quiz about the content from Friday)
June 16:
Back from our field trip! Today we just focused on the breakeven power point a little way down on this wiki. Even though we only focused on that we didn't even make it to margin of safety on the powerpoint.
Revenues
'The income generated from the sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted. Revenue is shown usually as the top item in an income (profit and loss) statement from which all charges, costs, and expenses are subtracted to arrive at net income.' Source Businessdictionary.com
Revenue consists of cash and credit transactions and is recorded on the date the item was sold. In other words, revenue is recognized when the income is earned and not when it is received. Revenue for a given period of time is generally calculated through the following formula:
Revenue = Price X Quantity Sold
A visual representation would look a lot like the variable cost graph. It would start from the origin, because without any products being sold, there is no revenue. The main difference is that the total revenue line would be stepper than the variable cost line. This is because the business would charge a price higher than the variable cost per unit.
Of course, organizations often sell multiple products at different prices, but this simple formula and graph is an important one to keep in mind to understand revenue and will be used when we cover break-even analysis..
Video showing Apple's revenue.
https://www.youtube.com/watch?v=nZ6webaJaTo
TEST TIP:
Remember that Revenue is not the same thing as profit nor is it the same thing as Cash.
Breakeven Analysis
Break even analysis Power Point:
t will be important for us to address the following limitations of break-even analysis whenever we apply it:
There can be many different revenue streams:
June 9: Field trip presentations to help class better understand the workshops that we will be having.
Each team will have 10 minutes to present their company or destination and how it relates to the business class. What is interesting and what kinds of questions can we ask?
Tono and Santiago - Civil Rights Museum
Thomas and Randy - TM Capital
Christine - Okabashi footwear brand
Jade and Joustinne- Center for Disease Control
Melodie and Lily - Turner Broadcasting
Marco P. and Manuel - Cartoon Network
June 2: Profe Jose will substitute.
Your presentation for Corynne is on Tuesday of next week.
Please create your slide deck, practice your presentation, work on your creative element and make sure that your presentation is professional and complete. Make sure to use your time wisely.
Rubric fo the promotional mix presentation.
Dress professional business attire.
May 31: Jake will substitute and you will probably not get through all of this. Can someone bring graph paper to class?
Introduction
Our first finance topic, 3.1 sources of finance, covered the various ways finance can be raised to cover expenditures. As you recall, some of the sources of finance were more appropriate for long-term expenses or capital expenditures (e.g. share and loan capital) while other sources of finance were more appropriate for short-term expenses or revenue expenditures (e.g. overdraft and trade credit).Beginning with this lesson, we start the next finance topic - 3.2 costs and revenues. Specifically, we will look more closely at the different types of costs businesses face.
We will classify the different types of costs faced by businesses. Specifically, we will categorize costs in two ways depending on if the costs vary directly with:
- The level of output (i.e. level of products produced and sold)
- The output level of a specific product or a department
The first way of categorizing costs leads to three distinct types - fixed, variable and semi-variable costs. It is helpful to categorize costs in this manner when performing a break-even analysis, which we will learn about later this week.Video about Fixed and Variable Costs
https://www.youtube.com/watch?v=nQ5APwtB-ig
Fixed Costs:
Fixed costs can be depicted visually by the graph displayed above.Businessdictionary.com states that fixed costs are:
‘While in practice, all costs vary over time and no cost is a purely fixed cost, the concept of fixed costs is necessary in short term cost accounting. Organizations with high fixed costs are significantly different from those with high variable costs. This difference affects the financial structure of the organization as well as its pricing and profits.‘
Variable Costs
Variable costs can be depicted visually by the above graph.
Businessdictionary.com states that variable costs are:
‘A periodic cost that varies in step with the output or the sales revenue of a company.Companies with high variable costs are significantly different from those with high fixed costs. This difference affects the financial structure of the company as well as its pricing and profits‘
Semi-Variable Cost
Businessdictionary.com states that semi-variable costs are:
‘Production cost (1) that remains fixed up to a certain volume, after which it becomes variable, (2) the total of which responds less than proportionately to changes in volume of activity, or (3) which has both a fixed cost element (such as monthly rental for a phone line) and a variable cost element.
In reality, most costs have both a fixed and variable element, thus making them semi-variable. Semi-variable costs are more difficult to depict visually, but one interpretation is shown above.
TC = FC + VC (Total Cost = Fixed Cost + Variable Cost)
Variable Cost = AVC (Average Variable Cost)
Quantity (Q)
Fixed Cost = AFC (Average Fixed Cost)
Quantity
Total Cost = ATC (Average Total Cost)
Quantity
Now we will answer some questions about Costs:
Worksheet for Fixed and Variable Costs.docx
Read this article.
http://www.businessinsider.com/airlines-expect-best-profits-ever-in-2014-2013-12
You can also look at other articles if needed.
Then:
Answer the following questions using appropriate business terminology (e.g. direct/indirect costs, variable/fixed costs, revenue, etc.).
May 30: Jake will be substituting. Finish sources of finance. Make sure that slides are complete.
May 25: Homework due.
https://docs.google.com/presentation/d/1IcBqhEZ4zUjQ7VRMlcDjC-zD9nxZgd1zXSmOeeu0fNA/edit#slide=id.g1e1ca41592_0_128
May 24: Return tests
Work on promotional mix presentation.
Create your final presentation:
Start finance unit with Homework for May 25:
Have you heard the phrase ‘It takes money to make money.’? The first aspect of finance we will consider is the different ways businesses can acquire finance to run their business. There is a list of various sources of finance that is located below that we will need to become familiar with. This is the goal of the google docs activity that we will do today.
You will also need to be able to determine which source of finance is best for a given situation. This will require you to consider the specific circumstances of the situation and relate it to the advantages and disadvantages of the different sources of finance. The discussion activity which you will complete will outline how we will help each other develop this skill.
For this activity, we are going to pool our collective genius and complete a google presentation as a class by following the instructions below.
Choose three of the following sources of finance or one of the expenditures from the following list:
Capital Expenditure Miss Amy
Revenue Expenditure Miss Amy
We will create a google slide share about these terms. With your term you must include:
Short term finance-This is for any kind of finance that needs to be repaid within a year. (12 months)
Medium term finance- This needs to be repaid within the timeframe of 12 months and 5 years.
Long term finance- This type of finance refers to any period of five years or longer. (Long term loans, debentures.)
These are some articles that you can use.
http://smallbusiness.chron.com/sources-finance-advantages-disadvantages-14407.html
Geared towards small business owners, this article provides the advantages and disadvantages of personal savings/funds, investors, bank loans, and government grants and loans.
http://www.tutor2u.net/business/gcse/finance_choosing_right_sources.htm
http://www.tutor2u.net/blog/index.php/business-studies/comments/sources-of-finance-flashcards
http://tutor2u.net/business/finance/raising_finance_intro.htm
http://tutor2u.net/business/finance/finance_sources_smes.htm
Helpful information on sources of finance including descriptions of various sources, how to choose the right source, and flashcards.
http://www.bized.co.uk/learn/accounting/financial/sources/index.htm
http://www.bized.co.uk/virtual/bank/business/finance/sources/theories.htm
A description of the various sources of finance including the differences between internal and external sources, and tips on how to decide which source is best.
http://www.economywatch.com/finance/sources-of-finance.html
a description of sources of finance in terms of ownership.
http://www.fao.org/docrep/w4343e/w4343e08.htm
From the Food and Agricultural Organization of the United Nations a detailed description of various sources of finance.
http://businesscasestudies.co.uk/business-theory/finance/sources-of-finance.html#axzz2vDowvciC
a shorter description of the various sources of finance.
http://articles.bplans.com/how-to-get-your-business-funded/
this article is great to know which source of finance is adequate for different types of businesses.
http://www.investopedia.com/terms/f/financing.asp
A basic yet informative definition of financing.
May 23: Make cards with the art students today. Take your time and be concientious because these are going to the people that we need to thank for all that they are doing in Atlanta.
May 16: There will be a Unit test on Friday over all of the Marketing course. Questions ? Let me know.
E-commerce conversation
https://www.bloomberg.com/news/articles/2017-03-30/amazon-wants-cheerios-oreos-and-other-brands-to-bypass-wal-mart
What is different about e-commerce versus brick and mortar?
* Global Reach - e-commerce breaks global barriers!
* 24/7 accessibility - they are open all the time so it is more convienient.
* Access to information - consumers are now able to find detailed and accurate product information which helps make informed buying decisions.
* Consumer reviews - empowers customers to post online consumer reviews, which can have a direct impact on the business decision of other customers. Customers can also share via their social media networks.
* Impersonal interaction - Business to Consumer firms rely heavily on e-commerce to reach their customers and their interaction with them is totally impersonal.
How does that effect Price? Melodie, Randy, Thomas
How does that effect Product? Jade, Christine, Marco
How does that effect Place? Manuel, Joustinne, Santiago
How does that effect Promotion? Tono, Lily
E-commerce involves three functions:
Business to Business or B2B: This is e-commerce that is targeting the needs of businesses. Alibaba and IBM are good examples.
Excellent examples of B2B marketing:
https://www.ceros.com/blog/5-inspiring-b2b-marketing-campaigns/
B2B buyers are professional and have a different agenda for why they are buying.
Business to Consumer or B2C: E-commerce directly catered for the consumer. Amazon is a great example.
Consumer to Consumer or C2C: e-commerce platform that enables customers to trade with each other like EBay.
Why sell online?
This question can best be understood by reading through some statistics on the electronic shopping explosion that is occurring:
TChart for benefits and costs of e-commerce.
May 11th:
Guerrilla Marketing uses untraditional, unconventional and perhaps unruly but creative and original methods of promotion on a relatively low budget. Some great examples:
http://www.creativeguerrillamarketing.com/guerrilla-marketing/122-must-see-guerilla-marketing-examples/
Place
The downfall of the video store is not the product. People still watch videos at home.
https://www.youtube.com/watch?v=3TrPwOrf4sM
After watching the video explain how influential place decisions have been in this marketing mix.
Place is defined by the textbook as: A distribution strategy that determines how a customer will receive the product. This is a decision that is linked to marketing objectives and fully integrated into the marketing mix.
Channels of Distribution: A chain of intermediaries that a product passes through from producer to the final consumer.
Place powerpoint
Specialty channels of distribution
A specialty channel of distribution is any indirect way to distribute products that do not involve retailers. Some exampes are: telemarketing, e-commerce, vending machines and mail order.
Advantages are: there are no intermediaries and so the business doesn't have to share any of the profits, businesses have direct control over their distribution, they can reach potential customers who do not have easy access to retail outlets.
E-commerce or Electronic Commerce refers to the buying and selling of goods and services online.
https://www.youtube.com/watch?v=4NyXzir2yKg
Examples of goods and services sold online:
Financial services - banking, foreign exchange and share trading can all be done online.
Gaming
Retailing
Can you think of any others?
May 9:
Promotion: Promotion is the attempt by marketing professionals to inform people about products and to persuade them to buy the product.
Here is the power point without the videos. I have added the urls.
Work on presentations for Corynne.
Social Marketing:
Digital Technology has added a new dimension to marketing. While promotion through traditional media such as newspapers, television and news web sites was about delivering a message, promotion with social media is about building a relationship and conversation with customers.Study on trends in social media: http://socialmarketingwriting.com/3-infographics-with-100-social-media-statistics-you-need/
With nearly 49.6% of the world online in 2017, companies today are recognizing the ability of social media to reach a wide global audience quickly.
http://www.internetworldstats.com/stats.htm
The term ‘viral marketing’ is used to describe a situation where an idea spreads exponentially typically through the use of social media helping your business or cause. As Seth Godin explains in this blog post:http://sethgodin.typepad.com/seths_blog/2008/12/what-is-viral-m.html
viral marketing can happen through the nature of the product or as a separate marketing campaign.
The term ‘guerrilla marketing’ was first identified by Jay Conrad Levinson in 1984 and is described on his website:
http://gmarketing.com/what-is-guerrilla-marketing/
as '...achieving conventional goals, such as profits and joy, with unconventional methods, such as investing energy instead of money.' Although guerrilla marketing can be quite powerful and almost necessary for small businesses, large businesses have also used this strategy. The videos in the next section provide a couple of examples.
Watch the coca-cola happiness machine in action as Coca-cola looks to have people associate happiness and pleasure with their product.
https://www.youtube.com/watch?v=lqT_dPApj9U
Watch Paramount Pictures’ viral marketing stunt for its film ‘Paranormal Activity’. What was started with a mere $15000 budget has emerged as the most profitable movies of all times. Thanks to Social Networking.
https://www.youtube.com/watch?v=9Mp6Buc0Ch0
Discussion
Read through the questions below and select one to answer.
1 Evaluate the success of 'social media marketing' as a means of promotion for companies today?
2 Share a real world example of viral marketing or social media marketing technique used by a company (you can use images or videos).
3 Analyze the purpose of 'promotion' for companies like Paramount Pictures in maintaining sales and market share for non-essential products.
May 5:
Pricing stategy homework is due.
Case study exam on Pricing strategies.
Packaging
'Even in a shadow, people know it’s a Coke', observes a packaging expert.
It’s a beautiful definition of how a package can influence the way a consumer perceives a product. Traditionally, the primary function of the package was to contain and protect the product. Currently, various factors have made packaging an important marketing tool. Green packaging, squeezable ketchup bottles, Universal Product Codes (UPCs) are just some packaging techniques companies use.
In 2007 violinist Joshua Bell played his violin in the Washington DC Metro during rush hour. His video is below:
https://www.youtube.com/watch?v=WC9IvjrgZ7INormally, Joshua Bell earns close to $1,000 a minute on-stage at venues such as Carnegie Hall. While in the subway, he earned $35 in one hour. Packaging a product or service is very important.
Multiple objectives of packaging:
http://changingminds.org/disciplines/communication/color_effect.htm
http://visual.ly/color-emotion-guide
Find an image or video of a package and explain its importance. Remember, a package is not only meant to contain and protect the product but perform numerous functions such as:
* Customer perception. Customers perceive quality packaging with a quality product.
* It acts as a form of product differentiation.
* It protects a product during transportation adn distribution of the product.
* Labelling can be used to provide information whcih could be leagal, informative or promotional.
* Packaging can be used to encourage impulse buying such as candy at the point of sale.
* Packaging can be used to promote the brand. (Starbucks coffee cups.)
Marketing Project Product:
What is your product/service? Describe the appearance, packaging, purpose and use for your product/service.
Who is your target customer (consider age, social group, income)? This information should come from your market research.
Work on the Frijoles Locos project.
May 3:
Pricing:
Price refers to the amount paid by a customer to purchase a good or service. The pricing decision is a crucial part of any marketing strategy.
The ultimate objective of all marketing activities of a company is the long-term growth in profits. Pricing strategies are aimed at achieving that goal.
Pricing Strategy video that very clearly answers a test quetion for the IB. It explains the business, the product, the decision that needs to be made. Then it lays out the different options and the positives and negatives of each and how they connect back to the business. Then it answers the question clearly with good justification.
https://www.youtube.com/watch?v=XBmWEduod5k#t=31
Interesting article about pricing strategies of Xbox and PS4. Companies behind successful products can still fail unless they can capture some of the value that they create in the prices they earn.
http://venturebeat.com/2013/11/29/the-deanbeat-the-xbox-one-cost-471-to-make-the-ps4-costs-381-and-why-this-matters-in-the-long-run/
http://www.greatideasforteachingmarketing.com/how-important-is-price/
Which one would you purchase? Would you just purchase the lowest priced item? Or would you consider other factors? Does it depend on the product being purchased? Chances are price is not the only consideration.
Homework: We have a general understanding of the different pricing strategies now, let’s examine the appropriateness of these strategies in the real world. Each student has access to this Google Sheet. Use the infomration above and your own research skills, fill out the spreadsheet together. Make sure that each student makes at least 3 additions to the google sheet.
As you complete the advantages and disadvantages consider the following for each pricing strategy:
May 2: Homework: Branding yourself!
April 28:
Objective: Students will understand the importance of all 4 aspects of the Marketing Mix and how they fit together.
Vocabulary:
Marketing plan: A document outlining a firm's marketing objectives and the marketing strategies to be used to achieve these objectives.
Includes: SMART marketing objectives e.g. expected sales turnover within a specific timeframe, market research methods, assesment of strengths and weaknesses of competitors, outline of marketing mix, details of the budget, outline of anticipated difficulties and strategies to deal with these problems.
Marketing Mix: The combination of various elements needed to successfully market a product. The 4 P's: Product, Price, Promotion, Place.
Marketing project. See below:
Marketing Project update:
Choose the product or service that you will focus on based on your market research.
Create a marketing plan for your chosen product/service
Outline each part of the marketing mix and explain how they link together to create the desired product/service that your team wants to offer.
Create your final presentation:
Rubric for the Promotional Mix
April 26:
Boston Matrix Quiz
Work in groups to prepare questions for Corynne on Friday.
April 25:
Branding
Play the game at home.
http://quizzzz.net/en/logo/
How did you do? Don’t worry if you were unable to get them all right. In fact, the following activities will show that a brand is much more than just a logo.
What is Branding?
Easy to understand video about Branding.
https://www.youtube.com/watch?v=By9m3UBiRZM
Key vocabulary:
Branding:
The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.
http://www.businessdictionary.com/definition/branding.html
Awareness, Relevance, Differentiation, Fondness (likeability)
Consider the following terms and their definitions and the role they play in branding:
Personal branding using the 4 concepts above:
What is YOUR Brand and what does it stand for?
Brand MISS AMY: Motivation, Positivity, Engagement, Inclusion, Laughter
CAS and Business are my subjects. The consistency of positivity, inclusion and motivation need to be the cornerstone of all my outputs.
My target audience is 10-12th grade high school students and their parents, but I need to make sure that I am starting to engage all middle school students and parents as well.
Miss Amy is my name. I need to make sure that I differentiate from Miss Amy that teaches middle school English by maintaing high energy and exuding positive warmth to all students and community members.
My slogan/jingle: My laughter. This also helps to differentiate me. It is known throughout the school and people listen for it.
Brand Awareness: My brand awareness is high among the high school and middle school students at La Paz Community School. However, I can to work on Brand Awareness. I am a new teacher in the introductory stage of the PLC. I can create brand awarenes by promoting my work on La Paz Community School YouTube channel, La Paz Facebook Page and morning meeting which will create brand ambassadors amoung the students.
Brand Loyalty: My brand loyalty is is developing. As a new teacher I am still gaining the trust of the students in the subject area of Business. My subject is highly competitive because Art is the other subject that Business and Management is competing against. There is little barrier to entry to enroll in art. If my Brand Loyalty increases, my success as a teacher will improve my market share and I will be able to demand more of my students. This will increase the scores in B&M at the end of the course. I will try to develop some student loyalty schemes in order to keep my students, such as feeding them on a regular basis as an added benefit.
Brand Development: I will develop my brand and increase brand awareness by using the tools mentioned above. I will also conduct market reseach at the end of each trimester in order to improve my teaching and interaction with the students. I will bring high energy and engaging activities to class on a daily basis in order to continue to develop my brand.
Brand Value: Because I am developing my brand, I can not charge premium pricing yet. I need to create engaging content that makes the students think that they are having fun and not working, but still learning content. This will entice other students to take the class and grow the Business and Management piece of my brand. This will increase morale and productivity.
April 21:
Continue to understand the product life cycle:
Another good article about product life cycle:
https://hbr.org/1965/11/exploit-the-product-life-cycle
Objective: Students will understand the difference between market share and market growth and be able to explain the Boston Matrix and utilize the tool to make recommendations about a product portfolio.
Vocabulary:
Product Portfolio: The variety of products owned by a business.
Strategic Business Units: divisions of an organization. Examples include Gatorade, Pizza Hut and KFC that are owned by PepsiCo.
Boston Matrix:
As part of product planning, a firm will constantly review the performance of a portfolio of its products, just so that it can spread the risk. Have you heard the saying: 'Don’t put all your eggs in one basket?'
The best-known method of analyzing a product portfolio to see its balance was devised by the Boston Consulting Group. A simple matrix enables firms to classify their products according to two key variables: relative market share and market growth, resulting in FOUR categories.
These four categories equate neatly to the stages in the life cycle of a typical product which you learned on Wednesday.
A ‘Question Mark’ is a product introduced recently which has not yet established itself, hence the doubt as to its future. If it passes through the growth stage successfully, it may become a ‘Star’ and then a ‘Cash Cow’ as it reaches maturity. Once it passes into decline, it becomes a 'Dog'.
.
Questions:
Explain why a broad and balanced product portfolio would be important for a business to succeed?
April 19:
Homework due at the beginning of class.
The Ethics of Market Research
One final but important and relevant aspect of market research involves considering the ethical issues involved in the collection and use of market research.
As the IB Business and Management guide states, 'every business decision has moral implications' and 'these consequences can be significant for internal and external stakeholders and the natural environment.'
Read and watch the links to videos and articles posted:
http://www.marketingprofs.com/5/fodness1.asp
http://smallbusiness.chron.com/ethical-considerations-marketing-research-43621.html
http://www.thestar.com.my/Business/Business-News/2013/02/02/Ethics-in-market-research.aspx/
Rick Smolan Can Big Data Change Who You Are?
http://www.economist.com/blogs/prospero/2013/05/kenneth-cukier-big-data
Video interview of Kenneth Cukier on Big Data by The Economist
Consider one of the following questions and answer in your notebook.
The Classic Life - Cycle
Markets are in a constant state of ‘change’. Over time, tastes and fashion change and so does the technology to produce goods and services. As a result of this change, new products will be demanded whilst old products will become obsolete.Which of the following (if any) have you seen recently?
http://smallbusiness.chron.com/examples-product-life-cycle-phases-13722.html Good article explaining the different stages of the Product Life Cycle.
The following image shows a typical Product Life Cycle, the course that a product’s sales and profits take over its lifetime.
The Product Life Cycle has 5 distinct stages.
1. Research and Development: This is where company's design and test new product. This tends to be expensive and time-consuming for businesses.
Companies will develop a prototype and test that prototype. Feedback from customers on the product and the advertising at this stage is critical. Most ideas at this stage do not get out of R&D. So when companies launch products successfully they need to make sure that they cover their costs of the successful products and budget for the unsuccessful ones.
2. Introduction Stage: Sales are relatively low in this phase (usually). And costs are very high for new promotions, distribution, lack of economies of scale. Innovators take the risk of buying these products.
3. Growth Stage: Sales revenue increases during this stage of the product life cycle. There are more channels of distribution and more customers (early adopters) that want to buy the product. Profits start rolling in and economies of scale start kicking in. However, competition comes with success as well.
4. Maturity Stage: Sales revenue start to plateau during this stage. Sales are at their peak and market share is high. Cash flow and profits increasing because economies of scale give the business a competitive advantage. There could be many competitors at this point and saturation could occur. So businesses will need to focus on reminding the customer that the product is still important or look to new market segments.
5. Decline Stage: Decline is the final stage before a product is withdrawn from the market. Sales and profit fall along with cash flow.
Product Life Cycle test for understanding.docx
Extending the Product Life Cycle
Other resources:
http://www.tutor2u.net/blog/index.php/business-studies/comments/video-case-study-product-life-cycle-of-the-standard-light-bulb video and case study.
http://www.tutor2u.net/blog/index.php/business-studies/comments/revision-quiz-product-life-cycle
http://www.funtrivia.com/trivia-quiz/World/BCGs--Growth-Share-Matrix-96141.html
April 18:
Review games: We will go over what we learned in the marketing unit with some of the first trimester sprinkled in using the games. 4 examples and Fly Swatter!
Marketing terms:
Market: A place or process where the customers and suppliers trade goods and services.
Social Marketing: The planning and implementation of programs designed to bring about social change.
Commercial Marketing: The use of marketing strategies to meet the needs and wants of the customer in a profitable way.
Niche Marketing: Targets a well-defined market segment. (model trains)
Mass Marketing: Refers to undifferentiated marketing that ignores targeting individual market segments. This is to maximize sales volume. Coca-Cola is a good example.
Perception Map: A visual tool that tells customer perception of a product or a brand.
Unique Selling Point USP: What makes a brand, product or any aspect of a business, stand out from the competition.
Differentiation: The act of distinguishing a business or its products from competitors.
Cluster Sampling: Selecting several geographic areas and randomly interviewing them. The region is chosen at random and then the individuals are chosen at random. This is great for businesses that operate in many geographical areas. However, the cluster being sampled could have different or unique characteristics.
Random Sampling: Every member of the population has the same probability of being included in the sample. It is easy to obtain the sample but the target market is not always represented.
Stratified Sampling: Dividing the population up into different subgroups and then choosing individuals from those subgroups at random. (So start by dividing the population up into groups that are different.) This method is difficult to organize but gives more accuracy.
Quota Sampling: Most commonly used sampling method. A certain number of people from different market segments are selected. It is easy to obtain a sample and the findings are more reliable than random sampling. However, not all the people chosen are representative of the population.
Snowballing: Requesting referrals from the initial respondents so that you can reach the desired number of responses. There is bias in this method of sampling but is easy to obtain respondents.
Convenience: Individuals are selected on their availability. This has the most inaccurate and biased results so try to get as many responses as possible.
Larger concepts to make sure that you understand.
Market and Product Orientation
Market Share: Formula and idea behind what it means to control the market or be the market leader.
Perception Map: How to use and why it is important.
What is a Market? What are different market segments?
What are different examples of a USP?
In what ways can you differentiate your business? Product? Brand?
What are the different Sampling methods and what are the drawbacks and benefits of each?
What are some Sampling errors that could be made when doing market research?
Market Research: What words come to mind when you think of it. What are the ethical implications of Market Research?
Making sure that ethical implications are taken into account is extremely important. Making sure that as a researcher that you do not cause Damage, be Deceitful, be Deceptive, Disclosure, Detachment.
Jigsaw:
1A Melodie 2A Christine 3A Joustinne and Tono Differentiation, Market Share
1B Lily and Randy 2B Santiago 3B Manuel Perception Map, Product and Market Orientation
1C Jake 2C Marco 3C Thomas Market Research Sampling Methods
Once you complete quadrants on your topic in your notebooks the ones will all go together (twos and threes as well) and teach each other the concepts that they worked on along with adding at least 4 new ideas to each.
Leave posters for the room.
March 14: Work in groups on the Market Research presentation for Friday.
Send a copy of your survey to Miss Amy for grading and feedback.
March 10:
Objective: Understand and be able to create a Perception map. Understand the concept and definition of Unique Selling Point (USP).
Perception (position) map: A visual tool that reveals customer perceptions of a product or brand in relation to others in the market.
It helps a business to identify any gaps in its product portfolio. It also helps a business define and improve their marketing strategies.
When Graphs Tell a Story
Let’s take a moment to think about different types, brands, prices and flavours of ice creams. Which ice cream brand name comes to mind when you think of top quality ice cream? Likewise, which brand name comes to mind when you think of a cheap ice cream? Are there any other brands that you think are in between the top quality one and the cheap one?Just as you hold different views about different ice cream brands, customers hold various views or perceptions for almost any product/service. Companies trace or plot these views or perceptions that customers hold of their products/services onto a map known as a ‘perception map’ or 'perceptual map’. Usually any two variables are plotted graphically, for example, quality and price in the case of ice cream.
How are Perception Maps created and used? Firstly, the most important attributes that influence consumer choices are taken into account. Secondly, marketers can decide where their own position is relative to competitors. Thirdly, it identifies where a gap exists in the market so the company can position itself strategically. For this reason, these maps are also referred to as product positioning maps.
https://rockstarsbm.files.wordpress.com/2014/11/screen-shot-2014-11-23-at-17-22-57.png
Advantages of a perception (position) map:
1. Very easy visual that simplifies the market research findings.
2. These graphs are quick and easy for management to interpret. Then they can make decisions based on information, may need to reposition a product...
Creating a perception map:
Label the axes. (Some examples: friendly/aloof, professional/unprofessional, comfortable/uncomfortable, stylish/functional, youthful/older, good value/poor value, full service/self service, advanced user/beginner, luxury/budget)
Decide on the brands that you would like to list in the perception map (competitors in the market)
Score the attributes based on a 0-10 rating and place on the perception map in the correct quadrant. Make sure to take your feelings out of the equation. This is how the consumer sees the product.
Analyze the map for either underserved by the market and areas that marketing can improve.
3 stages to positioning
1. Identify the competitive advantages of the product in question.
2. Decide on which aspects of these strengths should be marketed.
3. Implement the desired positioning by using an appropriate marketing mix.
Unique Selling Point (USP): The differentiating factor that makes a company's product unique, designed to make customers buy.
https://www.youtube.com/watch?v=GVP6QW58Ug4
March 9:
Define:
Who is your market and why?
What do you want to know?
How will you collect the data?
These should dictate the type of questions that you will create.
Presentation
What was your methodology? (sampling method, secondary primary, qualitative/quantitative) Why did you use these methods?
Analysis of the data.
What is the path forward because of the data collected.
March 8:
Marketing Plan: this week and next week
1. Determine what information you need. Do you need information on potential customers? Do you need information on competitors? Do you need information on the market?
2. Gather both primary and secondary research. You will need to use one sampling method.
Market Research for your project.
How to write your survey questions.
https://owl.english.purdue.edu/owl/resource/559/06/
Bring in your secondary research and competitor research to class in order to have a productive class.
We will go over the different kinds of sampling that can be done. Choose the right one for your project.
http://www.qualtrics.com/blog/frequent-sampling-errors/
5 common sampling errors to avoid.
http://www.mymarketresearchmethods.com/primary-secondary-market-research-difference/
A well written article on the difference between primary and secondary market research including an interesting link to a TED talk.
http://blog.marketresearch.com/blog-home-page/bid/334826/How-3-Companies-Used-Market-Research-to-Pivot-their-Businesses
How market research can lead to change. Examples from Twitter, Instagram, and Youtube.
Define the problem. What do you need to know?
How will you collect the data?
Write questions.
For your presentation at the end of next week.
March 7:
Short Case Study
Utilizing the data that you received from your market research surveys, display your data in a manner that the rest of the class can understand. What successful product have you identified? What are the characteristics and why? Where should you sell it? What is the price?
Move on to your market research for Corynne.
Marketing Plan: this week and next week
1. Determine what information you need. Do you need information on potential customers? Do you need information on competitors? Do you need information on the market?
2. Gather both primary and secondary research. You will need to use one sampling method.
Understand sampling methods below.
March 3:
Random:
http://www.changingminds.org/explanations/research/sampling/simple_random_sampling.htm
Cluster:
http://changingminds.org/explanations/research/sampling/cluster_sampling.htm
Stratified:
http://changingminds.org/explanations/research/sampling/stratified_sampling.htm
Quota:
http://changingminds.org/explanations/research/sampling/quota_sampling.htm
Snowballing:
http://changingminds.org/explanations/research/sampling/snowball_sampling.htm
Convenience:
http://changingminds.org/explanations/research/sampling/convenience_sampling.htm
March 2:
Marketing mix:
https://www.youtube.com/watch?v=JIirzTdaey4
Marketing Audit: The review of current marketing activities, with the goal of enhancing the marketing performance of the company. Some examples are SWOT analysis, PEST analysis, and market research. example: Samsung 3D TVs. Research studies say that their target market is men mid-20s to late 30s, caucasian men with growing families.
Marketing Objectives: Marketing objectives define what a company wants to achieve through its marketing activities. Examples of marketing objectives are an increased market share and diversifying into a new market. As with any objective, marketing objectives should be SMART.
For Samsung, in order to capitalize on the growing video gaming market, its objective is to enter into a partnership with Microsoft to develop a virtual gaming product. This will enhance their market share.
Marketing Strategies: Once definite marketing objectives have been agreed, the next step is to decide on the strategies that will need to be adopted in order to achieve those objectives. This involves the company working out how they will get where they want to go. The marketing plan and the marketing mix will outline the marketing strategies to be adopted.
For Samsung, one such strategy (promotion strategy) was launching an ad campaign in which Samsung will preach the need for quality and convince consumers that if they are going to have a 3D TV, they should have the best, Samsung.
https://www.youtube.com/watch?v=LD2fVZDG8VI
Monitoring and Review: This involves outlining controls that will be used to monitor progress, and to check and assess that targets are being met.
By withholding 3D TVs with glasses in 2010 and selling only glasses-free TVs, Samsung monitored their market share in the 3D TV market before releasing 3D TV glasses in 2011.
Evaluation: Evaluation entails measuring the results and outcomes of a company's marketing activities against the original marketing objectives set.
Has Samsung achieved its three million 3D TVs sales target for 2010? What if Samsung lost their partnership with content providers such as Dreamworks and Technicolor, with whom they have joint ventures. Samsung would look at starting a new partnership with Pixar. Such an evaluation will help with decision-making and planning for the next marketing audit.
Corynne will come to class to talk about Frijoles Locos and their new or existing initiatives that she is planning to promote.
Marketing Project:
Break up in 3 or 4 groups.
Meet with Corynne to decide on products that Frijoles Locos would like to promote to either the local community or global community.
You now conduct market research.
Create a marketing plan for your chosen product/service.
Outline each part of the marketing mix and explain how they link together to create the desired product/service that your team wants to offer.
Create your final presentation:
Product Orientation vs. Market Orientation
Come to class with 3 connections based on your experience from marketing a vacuum and how it related to what you have learned from about Market Orientation and Product Orientation.
We will discuss these questions in small groups in class:
How has globalization influenced the change from product orientation to market orientation?
Look at Coca-Cola, Samsung, Toyota, Hershey's, Dos Pinos, Imperial, and Brit. Are they product or market oriented? What are tactics that some of these companies are using to change from a totally product centered company, if any?
Discuss how our changing lifestyles are affecting companies and the way that they market.
The podcast is How I Built This Listen to the Patagonia one with Yvon Chouinard from December 12, 2016. It is available on iTunes. Let me know what you think!
Feb. 28:
Lily, Manuel and Melodie will present their embedded marketing examples.
How to market a vacuum.
Split into 2 groups:
Group 1: Thomas, Randy, Christine, Manuel, Santiago
You will have a model of the perfect vacuum. Examine the vacuumm. What characteristics do you find that are useful?
Create a plan to sell the greatest vacuum ever and present it to Group 2.
Group 2: Lily, Melodie, Jade, Toño, Joustinne and Marco P.
Iliyana and Lourdes have decided that it is taking up too much time to sweep the carpets and floors in the new school and the existing school. Tatiana, Miss Erika, Angie and Mr. Abel have overheard them talking and believe that a new vacuum is needed for La Paz (and maybe their homes). What characteristics of a vacuum does La Paz need?
Create a plan to sell the greatest vacuum ever and present it to Group 1.
Homework: Read the following document and articles and come to class with 3 connections from the How to market a vacuum project and what you have read.
Feb. 24: Homework: Small presentation on the embedded marketing that you have found in your content.
Next, look at the list created in Step 2 and answer the following questions:
Think about which of the articles, that your class presented yesterday, that connects to your research above.
Feb. 23: Homework: Very small presentations of your articles to the class.
Continue to watch your content and see if there are any connections to the articles and prepare a small visual presentation on how you see marketing in your TV shows, YouTube videos, movies, Instagram accounts, etc.
Feb. 21: Homework:
Using your CUEGIS company:
Research your company's market.The company's market is the industry that they trade in: example Rip Curl in the surfing industry. Tell me the characteristics of the market. What are the characteristics of their customer? What trends are happening in that market right now? Is it a growing market or a shrinking market? What are the large competitors in the market?
See if you can find how much market share they have.
Create a google doc for your CUEGIS company and share it with me. From now on all research and information about your company will go on this document.
Today we will look at:
Have you ever noticed that the advertisements popping up in your email or social media programs like Facebook, Twitter or YouTube are amazingly relevant to you? Or have you ever noticed that the same types of advertisements are shown during specific television programs? You may be wondering how or why this is done. Today, we will explore the world of market segments, target markets, and niche markets.
The majority of successful organizations go through a process of collecting, organizing and analyzing market research to identify different market segments.
Remember, market segments are groups of people that share one or more characteristics, needs or tastes. Identifying market segments cannot always be done effectively, but with the increase in digital traffic and commerce, a vast amount of data is being collected for this purpose. When organizations understand the different market segments, they can develop their marketing mix towards a particular segment or target market.
Market Segmentation: is the process of dividing a market into distinct subsets, where any subset may conceivably be selected as a marketing target to be reached with a distinct marketing mix. (i.e. product, promotion, place, price)
Segmentation Methods include:
1. Demographics-Characteristics of customer. (They frame you as a generation)
2. Benefits sought by the customer
3. Systematic, Product-Related Behaviors
It should be noted that organizations do this to varying degrees. Some organizations may have products or services that appeal to a mass market while other organizations target a more specific segment of the market, thus exploring and creating a niche market.
Remember, the marketing mix is made up of several elements including the product, price, promotion and place (or distribution). In this lesson, we will focus on promotion and specifically how organizations target markets through advertisements.
Step 1
Pairs of students will read one of these articles and then explain the information to the class:
http://qz.com/150310/expect-more-video-ads-on-your-youtube-screen-and-facebook-feed-next-year/ Melodie Lily
http://www.nytimes.com/2015/09/20/fashion/move-over-millennials-here-comes-generation-z.html?_r=1Thomas Toño
http://mediasmarts.ca/digital-media-literacy/media-issues/marketing-consumerism/how-marketers-target-kids Jade, Santiago
http://mashable.com/2013/05/12/two-way-conversation/#mN6BxZpdk5qE Randy, Joustinne
http://contentmarketinginstitute.com/what-is-content-marketing/ Christine, Marco P.
https://www.wsj.com/articles/p-g-to-scale-back-targeted-facebook-ads-1470760949?mod=djem10point Manuel
Choose your content and start to look at the questions below.
Step 2
Choose either a television program or movie to watch, or a social media program, to track over the next few days. As you are watching or interacting with the program, write down the products being advertised. You will need to have a list of at least five different products. Make sure you are specific. For example, instead of writing down 'Nike', write down 'Nike advertisement for women's running and cross country shoes'.
Step 3
Next, look at the list created in Step 2 and answer the following questions:
Think about which of the articles, that your class presented yesterday, that connects to your research above.
Speed dating.
.
Feb. 16: Present your homework to the class and discuss.
KEY TERMS
- Market Size: the total sales of all firms in a market. Can be measured in two ways volume of sales (units sold) or value of goods sold (revenue).
- Market Growth: the percentage change in the total market size over a period of time. Think about the characteristics of different markets. Washing Machines/computers/telephones...
- Market Leader: a firm with the highest market share in a given market
Market Share: This refers to an organization's portion of the total value of sale revenue within a specific industry. It is measured by expressing the firm's sale revenue as a percentage of the total sales revenue in the industry, per time period. (Our textbook definition)
Market share = firm's sales revenue x 100
industry's sales revenue
There is a clear correlation between market share and profit. There is also economies of scale benefits that come with being the market leader. These businesses are also less threatened by competition and can set prices in their industry.
Benefits of being the market leader
Explain the market share data given from this article.
Describe the characteristics of the market that VW operates in based on the information from the article.
http://forbesindia.com/article/forbes-global-2000/chief-martin-winterkorns-best-laid-plan-for-volkswagen/35187/0
Explain the market share data given for one of the products (i.e. browsers, operating systems, search engines)
Can you describe the characteristics of that market from this website?
http://www.netmarketshare.com
Find information about your company's market. What is their market? What characteristics of the market can you list? Find a website that will help you with this information. Create a CUEGIS google doc that you can continue to put information into about different topics from the class.
Example: Surf industry:
http://www.strategyr.com/PressMCP-6536.asp
Consumers who belong to a particular target market and segment should be clearly identifiable. The characteristics to include or exclude in identification of a market segment are also well defined and measurable. Target markets are quantifiable in terms of population, income and age bracket, among other factors.
http://smallbusiness.chron.com/characteristics-market-segments-target-markets-22601.html
Market concentration: measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry. (Market leaders)
The sum of these market shares is known as the concentration ratio.
http://www.economicshelp.org/blog/glossary/concentration-ratios/
Feb. 14:
Important examples and notes for this section of the course:
Marketing is all about getting the RIGHT (product to customer to the time - all should be RIGHT)
Concerns with the 4 p`s - (Price, product, promotion, place)
And additional 3 to the marketing mix which are (people, process and physical evidence)
Product orientation is a key element which must take place before delivering the actual product to the customers
Importance of Commercial Marketing: determine consumer needs and wants,
Importance of Social Marketing: to influence a positive change to human behavior
Markering size looks at total sales of a firm and its share in a total market
Main marketing objective for profit organizations is to identify, design, and strategies for profit to the business
Main marketing strategy to for Non-profit organizations is to market for "social" reasons
Note: Marketing is an essential process involved with almost every company in the world because it is how companies can show the people what they have to offer.
KEY TERMS
- Market Size: the total sales of all firms in a market
- Market Growth: the percentage change in the total market size over a period of time
- Market Leader: a firm with the highest market share in a given market
Understanding the role of marketing:
We will watch and then I will upload after class with only links.
Homework:
Select any one of the marketing scenarios that you were introduced to in the power point:
The idea is to relate examples from your own country. Share how a local company marketed their services or products in your community, highlight the differences that exist in marketing goods vs. services. Likewise, do you notice a distinction between marketing measures adopted by for-profit organizations vs. non-profit organizations? Lastly, commercial vs. social marketing. Share your experiences and examples with the rest of your class.
Feb. 10:
Spark:
Close your eyes: Think about what products you have come in contact with today. (Food, electronics, clothing) What are two things that you can not live without that you have used today? What made you purchase this item? How was that emotional connection created?
Do all organizations market themselves? Do they have a choice whether or not to carry out marketing? Why do only some stand out for their systematic marketing effort?
Let’s explore some answers to these by looking at the Beckhams.
Brand Beckham!
The husband-and-wife partnership of former England soccer captain David Beckham and former Spice Girl Victoria (‘Posh Spice’) is worth a half of a billion US dollars.
How can this partnership of a ‘former’ soccer star and popstar be more famous than what they started out?
Simply put, the answer is brilliant marketing. The fame of ‘Posh and Becks’ spans five continents. Beckham is the second-most-recognizable foreign word in Japan after Coca-Cola. The combined business revenue of the couple is almost US $165,000 a day.
So, what can David and Victoria Beckham teach us about marketing? Although David Beckham’s football career is over, brand Beckham is bigger than ever.
We will watch a couple videos about the couple and what they sell.
David Beckham's recent commercials:
Victoria Beckham's look:
http://www.harpersbazaar.com/celebrity/red-carpet-dresses/g3573/victoria-beckham-best-looks/
Discussion Questions
Write your answer to at least one of these questions. You should also respond to at least two of your classmates discussion points.
Marketing and its relationships btw businesses and their customers:
Needs: the essential necessities that all humans must have to survive: food, shelter, warmth and water.
Wants: human desires
Marketing: exists to adress people's need and wants.
The marketing department tends to have 4 main objectives:
http://blog.knowthis.com/what-is-marketing/role-of-marketing (Links to an external site.)
This is a website that explains everything about marketing including the role of marketing.
http://www.netmba.com/marketing/mix/
Great explanation about marketing mix.
Important examples and notes for this section of the course:
Marketing is all about getting the RIGHT (product to customer to the time - all should be RIGHT)
Concerns with the 4 p`s - (Price, product, promotion, place)
And additional 3 to the marketing mix which are (people, process and physical evidence)
Product orientation is a key element which must take place before delivering the actual product to the customers
Importance of Commercial Marketing: determine consumer needs and wants,
Importance of Social Marketing: to influence a positive change to human behavior
Markering size looks at total sales of a firm and its share in a total market
Main marketing objective for profit organizations is to identify, design, and strategies for profit to the business
Main marketing strategy to for Non-profit organizations is to makert for "social" reasons
Note: Marketing is a very essential process involved with almost every company in the world because it is how companies can show the people what they have to offer.
KEY TERMS
- Market Size: the total sales of all firms in a market
- Market Growth: the percentage change in the total market size over a period of time
- Market Leader: a firm with the highest market share in a given market
Source: Business Management Textbook~ page 254
Innovation & marketing: Marketing strategies change just like many other things in businesses. Companies have to make adjustments based on what works for them and what doesn't. Changing things up also keeps customer interested. Here is a visual representation of how Google has changed over the years to stay on top for so long:
Feb. 9:
Go over test
Prep for the 12th grade presentation which are today at 10:00-10:20.
Here is the document on all of the growth strategies. It includes definitions and pros and cons.
February 3: Unit one case study exam prep.
Each student come to class with one or two questions about material that you do not feel 100% comfortable with and then one or two topics that you feel very comfortable with.
February 2: The rest of the presentations are due: Randy, Thomas, Lily, Christine, Toño
Give feedback and make the presentations even stronger for the 12th grade.
Ask any questions for the test.
January 31: Presentation from Jon about his company and their growth.
Present your creative definitions to Miss Amy. Check your email for definitions and advantages and disadvantages.
These will be graded on:
Creativity: The information is presented in a creative way, is new, unique and surprising. It shows thoughtful planning and presents the definition in a clever and surprising way.
Content: The definition of the word is correct. The advantages and disadvantages of the growth strategy are clearly outlined for the listener.
Ease of remembering information: The listener is engaged and learns something from your presentation, then can repeat it back to you.
There will be a unit 1 test next Tuesday. It will be a 70 minute IB case study exam that will cover everything that we have studied up until this point in the course. Start studying now!
January 27: Presentation about globalization from Marco P., Manuel, Toño and Santiago
Objective:
Students will be able to explain how a firm's size can be measured.
Students will understand the different growth strategies of a business.
Students will consider how to measure the size of a business. Spider diagram on board.
Vocabulary for today:
Key terms in business growth
Internal growth Thomas
External growth Manuel
Horizontal Integration Jade
Vertical Integration Melodie
Forward Vertical Integration Paquette
Backward Vertical Integration Santiago
Merger Lily
Acquisition or Takeover Toño
Joint Venture Randy
Franchise Christine
Strategic Alliance Joustinne
Homework: Each student will receive a word and define first. Then each student will create a rap, song, mnemonic device for the 12th grade to help them remember the terms during their test. Due Tuesdsay.
January 26:
Presentations about globalization.
Growth strategies for business.
Potential Advantages of small and large businesses
Small businesses
Large businesses
- Can be managed and controlled by the owners
- Often able to adapt quickly to meet changing customer needs
- Offer personal service to customers
- Find it easier to know each worker and their needs
- Average costs may be low due to no diseconomies of scale
and low overhead- Can afford to employ specialist managers
- Benefit from cost reductions associated with large scale production
- May be able to set prices that other firms have to follow
- Have access to several different sources of finance
- May be diversified in several markets and products, so risks are spread
- More likely to be able to afford research and development into new products
and processes.Potential Disadvantages of small and large businesses
- May have limited sources of finance
- May find the owner(s) has to carry a large burden of responsibility
if unable to afford to employ specialist managers- May not be as diversified, so there are greater risks of negative
impact from external change- May be difficult to manage, especially if they are geographically spread out
- May have potential cost increases associated with large scale production
- May suffer from slow decision-making and poor communication (diseconomies of
scale)Why do business want to grow?
1. Increased profits
2. Increased market share
3. Increased economies of scale
4. Increased power and status of the owners and directors
5. Reduced risk of being a target of a takeover
__http://smallbusiness.chron.com/takeover-vs-acquisition-32510.html__
__http://www.investopedia.com/ask/answers/difference-between-acquisition-and-takeover.asp__
The difference and similarities behind the terms takeover and acquisition.
__http://www.economist.com/news/business/21587207-corporate-dealmakers-should-heed-lessons-past-merger-waves-riding-wave__
This article gives a historical overview of M&A waves.
__http://www.economist.com/news/business/21578401-tech-giants-are-finding-lots-bolt-acquisitions-splash-out-platforms-upon-platforms__
Recent acquisition activity from technology firms.
__http://www.statisticbrain.com/largest-corporate-buyouts-mergers-and-aquisitions/__
A listing of the largest corporate mergers and acquisitions
Company Deals, Mergers and Acquisitions
Many business news sources have a separate section dedicated to tracking recent business deals, mergers, and acquisitions between companies. The following is a list to get you started.
Yahoo finance - __http://finance.yahoo.com/news/category-m-a/__
__http://www.mapreport.com/subtopics/b/e.html__ categorizes M&A activity by region
Reuters allows you to choose a specific geographic edition - __http://www.reuters.com/finance/deals/mergers__
The Economist - __http://www.economist.com/topics/mergers-and-acquisitions__
The Guardian - __http://www.theguardian.com/business/mergers-and-acquisitions__
CNBC - __http://www.cnbc.com/id/10000621__
Bloomberg Business Week - http://www.businessweek.com/markets-and-finance/mergers-and-acquisitions
Strategic Alliance video
https://www.youtube.com/watch?v=XIgwAFuXHQ0
Franchise video
https://www.youtube.com/watch?v=Ie8qJuXYN7w
Takeover video
https://www.youtube.com/watch?v=DATnkEEgPkg
Create a game that will help your classmates understand the terms above. Utilize the resources that I have given to understand the words and some examples. You will need to create an account to make the game.
http://en.educaplay.com
Internal Growth: When a business grows organically, using it's own capabilities and resources to increase the scale of its operations and sales revenue.
External Growth: Occurs through dealings with outside organizations. Such growth usually comees in the form of mergers or alliances with other firms. Mergers and Acquisitions are collectively known as integration of firms.
January 24:
Vocabulary test.
Objective: Students will understand globalization by looking through the eyes of corporations, food, music and noise. They will be able to define the concept and critically think about the impacts of globalization.
We will do this in class today. No need to do it as homework.
Articles at each station:
http://www.bbc.co.uk/worldservice/specials/151_globalgiants/index.shtml Santi, Toño, Manuel
http://www.bbc.co.uk/worldservice/specials/1616_fastfood/Melodie, Jade, Joustinne
http://www.bbc.co.uk/worldservice/specials/1042_globalmusic/Randy, Thomas, Lily
http://www.bbc.co.uk/worldservice/programmes/globalisation/noisyplanet/ Thomas has the headphones Christine and Marco start here and discuss.
Other resources
http://www.bbc.co.uk/worldservice/programmes/globalisation/
http://www.theguardian.com/sustainable-business/2015/sep/28/peak-globalisation-have-we-reached-it-uk
Start with the first 2 questions. After reading through 2 of the sections on globalization answer them with the information that you read. Then move on to question 3 and 4. After reading 2 more of the articles answer and evaluate with the knowledge that you bring to the table and information that you have read.
1. Which 2 ways of knowing are more useful than the others when trying to understand the process of globalization and its effects? Why did you choose them?
Language, Sense perception, Emotion, Reason, Imagination, Faith, Intuition and Memory.
2. To what extent is our knowledge of complex phenomena such as globalization dependent on our particular perspective?
3. How can we evaluate the benefits and drawbacks of globalization given the multitude of stakeholders influenced by it?
4. Does globalization unify our values, beliefs and knowledge or lead to their greater fragmentation?
Other resources:
__http://www.pbs.org/now/politics/globaldebate.html__ (Links to an external site.)
http://news.bbc.co.uk/hi/english/static/events/reith_99/
http://www.economist.com/topics/globalisation
http://www.bbc.com/future/story/20120522-one-world-order
Globalization can be defined as the growing integration and interdependence of the world's economies. It has caused national economies to integrate towards a single global economy, where consumers have ever-increasingly similar habits and tastes.
Increased competition because businesses are not competing with other businesses from around the world.
Meeting customers expectations has become more difficult because there is greater demand for quality. Also, the internet and social media have made it easier for customers to either praise or complain about companies.
Increased customer base. There are now vast opportunities for businesses to trade with other countries.
Economies of Scale: Businesses that are able to build a a global presence can benefit from economies of scale, such as the advantages of global marketing economies and risk-bearing economies of scale.
Greater choice of location. Where to produce goods helps businesses cut costs on labor.
External growth strategies: Mergers, Acquisitions, Strategic Alliances and Joint Ventures allow businesses to grow at a faster pace.
In
January 21:
Globalization:
Look at the pictures from around the room.
http://2.bp.blogspot.com/_Ty8myqVJ8gY/SCV85SbJa_I/AAAAAAAAABE/d63f2vRSQb0/s320/outsourcing-cartoon.jpg
https://jacobsongj.files.wordpress.com/2010/05/globalization-uber-allies2.jpg
http://1.bp.blogspot.com/-yc2JEYyo588/TdKyiuDRsoI/AAAAAAAAAAM/MQfwLHz-tzY/s1600/globalization.jpg
https://www.toonpool.com/user/613/files/mcdonaldization_79955.jpg
http://www.deviantart.com/art/Globalization-meal-101729643
http://orig14.deviantart.net/5571/f/2008/013/c/f/globalization_by_guille3691.png
http://cf.mp-cdn.net/34/1e/6f3ede088089fd055bb2c6a91007-is-economic-globalization-good-for-the-world.jpg
What is it about? (free trade, cultural identity, multinational companies...)
What feeling does it create?
Categorize as positive or negative?
"Whatever can be done, will be done. The only question is whether it will be done by you or to you." Thomas Friedman
https://www.youtube.com/watch?v=oM2BguxRSyY
Globalization as defined by the Levin Institute:
'Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.'
http://www.globalization101.org
January 19:
Economies of Scale: the lower average cost of production as a firm operates on a larger scale due to an improvement in productive efficiency.
Power point for Economies of scale:
Another resource to watch if still unsure about economies of scale.
https://www.youtube.com/watch?v=sbI7KD9FU3Q
Types of Internal Economies of Scale:
1. Technical economies-Large firms can use sophisticated machinery to produce their products.
2. Financial economies-Large firms can borrow massive sums of money at lower interest rates.
3. Managerial economies-In smaller businesses, managers need to wear many hats or do many jobs. But people are not great at everything (usually) so larger businesses can have specialized managers that leads to higher output.
4. Marketing economies-Large firms can benefit from lower average costs of advertising because they can use the same marketing campaign across the world.
5. Purchasing economies-Large firms can lower their average costs by buying resources in bulk.
6. Risk-bearing economies-Conglomerates can spread their fixed costs such as advertising or research and development across a wide range of operations.
External economies of scale:
Technological progress increases productivity within an industry.
Improved transportation networks help ensure prompt deliveries and employees are on time to work and cars last longer.
An abundance of skilled labor that exists in a local area helps businesses recruit and hire.
Diseconomies of scale: the result of higher unit costs as a firm continues to increase in size. Internal diseconomies of scale
Reasons for Internal Diseconomies of Scale:
1. Communication problems
2. Alienation of workforce either through lack of advancement, boredom or procrastination.
3. Poor coordination and decision-making (bureaucracy)
Reasons for External Diseconomies of Scale:
1. Too many businesses in a small area can cause an increase in rents because land becomes scarce. (NYC)
2. Workers have more choice in who they work for so there could be wage increases and financial rewards, leading to higher average costs of production.
3. Traffic congestion results from too many businesses in one area. Deliveries are delayed, employees are delayed.
January 19: Stakeholder mapping about YOUR brand due at the beginning of class.
Stakeholder mapping: Identify stakeholders in your life. Place in a quadrant of the stakeholder mapping grid below. Create a strategic plan to work with your stakeholders in the upcoming months that will be most beneficial for YOUR brand.
Also, final STEEPLE analysis is due at 10:00pm tonight.
Questions to answer for analysis:
Look at the opportunities that you have identified. How can you open up new opportunities based on these points? Are there new markets that can be opened? Are there new production methods that are identified? Are there new products that will fit into your product line?
Look at the threats that you have identified. How can you minimize their impact? What will you do to change your organization to mitigate their effect?
January 17: Vocabulary test. Define and use in a sentence.
Stakeholder
STEEPLE analysis
Market Segment
Return STEEPLE analysis homework. Answer any questions I might have had and return on Friday with analysis.
Questions to answer for analysis:
Look at the opportunities that you have identified. How can you open up new opportunities based on these points? Are there new markets that can be opened? Are there new production methods that are identified? Are there new products that will fit into your product line?
Look at the threats that you have identified. How can you minimize their impact? What will you do to change your organization to mitigate their effect?
Stakeholder mapping: Identify stakeholders in your life. Place in a quadrant of the stakeholder mapping grid below. Create a strategic plan to work with your stakeholders in the upcoming months that will be most beneficial for YOUR brand.
January 12:
Objective: Understand the interests of internal and external stakeholders.
Understand where there are possible areas of mutual benefit and conflict between stakeholders' interests.
Vocabulary:
Stakeholders: any person or organization with a direct interest in, and is affected by, the activities and performance of a business.
Internal Stakeholders: members of the organization, i.e. the employees, managers, directors and shareholders of the organization.
External Stakeholders: customers, suppliers, pressure groups, government, and competitors.
Stakeholder Conflict: Conflict arises because a business cannot simultaneously meet the needs of all its stakeholders.
http://www.bbc.co.uk/bitesize/higher/business_management/business_enterprise/business_contemporary_society/revision/9/
http://smallbusiness.chron.com/stakeholders-influence-business-activities-18754.html
http://www.economist.com/node/15954434
Spark: Remember the VW scandal. Make a list of the different stakeholders for that are involved.
Each student has a stakeholder role that is on their shirts. They will walk around the room interacting with the other stakeholders of VW and decide if there is a conflict between them after the crisis or if they are working on the same page. Stand up and give your biggest conflict and explain the source of your conflict.
Conflict happens because a business cannot simultaneously meet the needs of all its stakeholders.
Businesses should look at 3 key issues when dealing with stakeholder conflicts:
1)The aims and objectives of the business.
2) The type of organization that they are dealing with. (Partnership, non-profit, limited corporation)
3)The source and degree of power (influence) of each stakeholder group.
In a team, write a script that involves at least two stakeholders. You are NOT allowed to use the category of the stakeholders as names to identify them. That will be the job of your classmates to figure out. In the script, you will need to communicate the main interests of each stakeholder and depict at least one conflict that emerges from their main interests. You will show your play tomorrow at the beginning of class.
1. Identify the stakeholders. example: shareholders and customers
2. Discuss the conflict. Write a detailed paragraph discussing the conflict from both sides.
3. Recommend a solution to overcome one of the conflicts that you have identified in one of the dramas
4. Lastly, complete a self-evaluation of your work that reflects on the following points:
January 10:
Finish whip around the room from technology assignment.
How to answer a case study.
Objective: After this lesson, students will be able to understand the steps necessary to clearly and efficiently answer a case study using business vocabulary and tools.
Vocabulary:
Stakeholder: individuals or organizations that have a direct interest (stake) in the activities and performance of a business; exampes include employees, unions, customers, investors, managers, customers, and government.
Internal stakeholder: members of the organization; examples include employees, investors, managers.
External stakeholder: do not form a part of the organization but have a direct interest or involvement in the actions of the organization; examples include suppliers, government, customers, community members.
When answering a case study:
1. Identify the problem or issue. This section should be clearly identified in the introductory sentences utilizing specific references to the case study text. What business function will be involved in creating a solution to the issue, i.e. managerial, financial, marketing, operations, human resources.
Underline where you identified the problem.
2. Identify key Stakeholders and their Perspective.
- (A) Identify key stakeholders.
- (B) Describe their interests based on the problem or issue.
- (C) Describe their interests based on their perspective (are they a customer, stockholder, manager, employee, etc.?)
- (D) Then, evaluate both their perspectives and interests.
Circle the key stakeholders. But an * by their interests. Who has been affected by this change in demographic? Make a list.
3. Apply business analytical tools to solve the problems or issues. Use analytical tools learned in class in order to solve the issues above. What tools will help you organize your information about the business? highlight the demographics that have been used in your case study, now how are they affected?
4. Create an analysis and an evaluation: Using the tools that you have chosen above, present an analysis based on the information that you have gathered. Your evaluation of the issue will be supported by this evidence. Circle the businesses that will be most affected by your demographic.
Groups for this class:
Jade, Marco P. Christine, Lily
Santiago, Joustinne, Toño
Randy, Manuel, Thomas, Melodie
January 5:
Homework: Due Thursday at 10:00pm. Look at the example below. For this assignment, just the bullet point under each category are necessary.
Example:
STEEPLE analysis of your CUEGIS company. (Change, Culture, Ethics, Globalization, Innovation, Strategy)
Step 1
Research the business environment in the home country of your business.
Step 2
Research your country in the following ways:
Note: Your research must be recent (within the last year) because you are analyzing the current position of the organization.
Step 3
Write a STEEPLE analysis about your CUEGIS company using your research.
An example of technological factors
https://www.youtube.com/watch?v=6Cf7IL_eZ38
Opportunities
Threats
Activity: Look at the list of opportunities and come up with examples of companies (or their products) that have benefited from the new technology. Now look at the Threats and think of companies (or their products) that have had to deal with these threats.
CASE STUDY: Nintendo and Apple
Environmental Factors: Some examples: air and noise pollution, packaging waste, smoking and carbon footprint.
Legal factors:
Legislation that is imposed by the government enacted through laws and regulations.
Ethical factors:
Choosing to be ethical and socially responsible can bring benefits, but there are also compliance costs involved with such decisions.
Threats:
Opportunities include:
Amoy Food, one of Hong Kong's oldest food brands, was charged fro false advertising, claiming in its advertising and packaging that its sauce products were free of monosodium glutamate (MSG). The Food and Environmental Hygiene Department found traces of MSG, an artificial flavor enhancer, in the company's oyster and soy sauce products. Hong Kong laws impose a maximum penalty of HK$50,000 ($6495) and six months in jail for anyone convicted of issuing false labeling and advertisements of food products. Amoy has been the best-selling brand in Hong Kong and Britain since 1994 and 1998 respectively.
An example of economic factors:
https://www.youtube.com/watch?v=bx_LWm6_6tA
1. Economic growth is the increase in a country's economic activity over time. It is measured by the change in value of the economy's total output (known as the gross domestic product or GDP) per year
https://www.youtube.com/watch?v=HEjpLZ-NnNA
The business cycle:
There is a boom where the level of economic activity rises with consumer expenditure, investment and export earnings all increasing.
There then is a recession where there is a fall in GDP for 2 consecutive quarters.
Then the trough or slump refers to the bottom of a recession and the last stage of decline in the business cycle. This is where there is high unemployment alongside very low levels of consumer spending, investment and export earnings.
After that, the recovery occurs when the level of GDP rises again.
2. Controlled inflation
https://www.youtube.com/watch?v=Vi3Q1ypNw3M
Inflation: the continual rise in the level of prices in an economy. Most economists regard low and stable inflation as a prerequisite to achieving the other 3 government objectives, so it is an absolute priority for economic prosperity.
Deflation: the decrease in the level of prices in an economy.
3. Reduced unemployment
4. A healthy international trade balance
https://www.youtube.com/watch?v=Ah1fEYjR-1Q
Jan.2:
An example of social factors
https://www.youtube.com/watch?v=vzSonILxpFk
https://www.youtube.com/watch?v=TzAtaZg6ljo&spfreload=10
Social, cultural, demographic factors can directly affect the activities of a business.
Activity: Think of one positive and one negative of the list below for businesses.
Examples:
Market segments: a distinct group of customers with similar characteristics (like age or gender) and similar wants and needs. By dividng a market into segments it is easier to analyze which groups of customers buy the product and then to target these customers more specifically.
Homework Using the card that you have been given: Find a company that directly markets their main product to this demographic. Give an example of why you think that is the demographic that they target. How does your business connect with their customer? Are there ways that they can find and extension to their products that targets another demographic? Make sure to have a visual to show the product (think marketing tool) that shows how they market to their demographic. Then answer and post your visual on a google doc. Questions? Check with me.
CASE STUDY:
Comment on how the following demographic changes present both opportunities and threats to businesses.
a) A growing number of self-employed people.
b) An increasing number of single parent families
c) Adults choosing to have fewer children and at a later stage in life.
d) An increasing number of people graduate with university degrees.
4 marks for each.
November 17:
Is an increase in interest rates a threat or an opportunity to your business? Why?
November 29: Short case study to start class and then practice the presentation for Corynne which will happen on Thursday.
November 22: Homework: SWOT analysis due when you walk into class as a group.
In class today, you will practice sharing your SWOT analysis of Frijoles Locos. We are going to ask Corynne to come to school one day before vacation and you will present directly to her so we need to practice.
November 18: SWOT analysis of Frijoles Locos
Today we will break into 3 groups that will create their own SWOT analysis. Then as a group we will combine them to write an outline for Corynne.
First:
Second:
Third: Write your analysis by answering the following questions:
1. How do you use your strengths to take advantage of the opportunities?
2. How do you overcome weaknesses preventing you from taking advantage of the opportunities?
3. How can your strengths reduce the probability of threats?
4. What can you do about your weaknesses to make the threats less likely?
Lastly: These questions will should have helped you understand your matrix.
So now develop an action plan!
November 15:
Homework: Short 5 minute presentation on your articles and outside research using business vocabulary and analysis.
Thomas and Joustinne: Taxes, trade, deregulation You guys received the overview...
Jade and Marco: Taxes looking at personal and business
Christine and Toño: trade
Manuel and Randy: inflation
Melody and Santi: deregulation
Just a couple quick talking points about how corporations look at the political change coming their way. These are from the comments that President-Elect Trump has made BEFORE the election.
Also, it could be beneficial to look at the industry of your "CUEGIS" company. An example would be Jade looking at luxury fashion and the tax plan of Donald Trump.
Start of class: Pass out the PEST analysis form for the groups to fill in for their political analysis.
Harvard professor Francis Aguilar is thought to be the creator of PEST Analysis. He included a scanning tool called ETPS in his 1967 book, "Scanning the Business Environment." The name was later tweaked to create the current acronym.
PEST Analysis is useful for four main reasons:
PEST Analysis looks at "big picture" factors that might influence a decision, a market, or a potential new business. SWOT Analysis explores these factors at a business, product-line or product level.
https://www.mindtools.com/pages/article/newTMC_09.htm
An example of economic factors:
https://www.youtube.com/watch?v=bx_LWm6_6tA
1. Economic growth is the increase in a country's economic activity over time. It is measured by the change in value of the economy's total output (known as the gross domestic product or GDP) per year
https://www.youtube.com/watch?v=HEjpLZ-NnNA
The business cycle:
There is a boom where the level of economic activity rises with consumer expenditure, investment and export earnings all increasing.
There then is a recession where there is a fall in GDP for 2 consecutive quarters.
Then the trough or slump refers to the bottom of a recession and the last stage of decline in the business cycle. This is where there is high unemployment alongside very low levels of consumer spending, investment and export earnings.
After that, the recovery occurs when the level of GDP rises again.
2. Controlled inflation
https://www.youtube.com/watch?v=Vi3Q1ypNw3M
Inflation: the continual rise in the level of prices in an economy. Most economists regard low and stable inflation as a prerequisite to achieving the other 3 government objectives, so it is an absolute priority for economic prosperity.
Deflation: the decrease in the level of prices in an economy.
3. Reduced unemployment
4. A healthy international trade balance
https://www.youtube.com/watch?v=Ah1fEYjR-1Q
An example of social factors
https://www.youtube.com/watch?v=TzAtaZg6ljo&spfreload=10
Social, cultural, demographic factors can directly affect the activities of a business.
Examples:
CASE STUDY:
Comment on how the following demographic changes present both opportunities and threats to businesses.
a) A growing number of self-employed people.
b) An increasing number of single parent families
c) Adults choosing to have fewer children and at a later stage in life.
d) An increasing number of people graduate with university degrees.
4 marks for each.
November 11:
STEEPLE analysis (All information is coming from Business Management by Paul Hoang 3rd edition)
Social, Technological, Economic, Environmental, Political, Legal and Ethical threats and opportunities of the external business environment. These factors are beyond the control of the organization. The STEEPLE analysis is important to any business strategy. An example would be assessing the feasibility of an overseas investment project.
External factors that present chances for businesses are called opportunities.
External factors that can harm a business are called threats.
Remember that external threats are subject to rapid and unforseeable change.
The key advantage of the STEEPLE analysis is that it is simple to use. It is also useful brainstorming and discussion tool. STEEPLE analysis promotes proactive and forward thinking rather than static views based on gut feelings. (Sometimes you will not need to conduct a full STEEPLE analysis. PEST stands for Political, Economic, Social and Technological. Then Legal gets pulled into political and Environmental and Ethical are pulled into Social.)
Example of political factors
https://www.youtube.com/watch?v=3-Ilc5xK2_E
Common political factors that affect businesses are changes in employment lawas, consumer protection laws, new environmental regualations and health and safety requirements.
Examples: They can all be opportunities and threats
Tax examples: Income tax, Corporate tax, Sales tax, Capital gains tax, Inheritance tax, Excise duties, Customs duties
A list of political factors affecting businesses:
https://ceopedia.org/index.php/Political_factors_affecting_business
http://www.inc.com/diana-ransom/donald-trump-declares-victory-whats-.html
So today we are going to look at Donald Trump's first 100 days in office plan and how business believe it will affect fiscal and monetary policy along with deregulation.
The plan:
http://www.npr.org/2016/11/09/501451368/here-is-what-donald-trump-wants-to-do-in-his-first-100-days
Deregulation:
http://www.wsj.com/articles/donald-trumps-point-man-on-financial-regulation-a-former-regulator-who-favors-a-light-touch-1478860201
Trade:
http://www.wsj.com/articles/donald-trump-win-to-upend-trade-policy-1478692802
Taxes:
http://www.wsj.com/articles/your-taxes-are-about-to-changeperhaps-not-the-way-you-think-1478797458
http://imindmap.com/blog/pestle-analysis-with-mind-mapping/ Excellent mind map showing the opportunities and threats.
November 10: Final presentations for Ansoff Matrix. Randy, Manuel, Thomas, Joustinne, Marco
Nov. 8: Homework is: using your CUEGIS company decide which growth strategy they have focused on in the last 2 years and how you are able to determine that. Using visuals to enhance your presentation talk for 5 minutes to introduce your company and their strategy to the class.
Nov. 3:
Homework due Wednesday night at 8:00. Your analysis of your mission statement objectives and you SWOT analysis.
Market: a place where customers and suppliers trade. A market exists where there is demand for a particular product and there are businesses that supply the products. Customers can be private individuals, other businesses or governments.
Consumer markets: markets that cater to private individuals.
Industiral markets or producer markets: cater to businesses and governments.
Different characteristics of a market can be:
Market size which is measured by revenue
Customer base which is measured by the total potential number of customers in a particular market. This is also a measure of market size.
Competition: The degree of rivalry within the market.
Geographic characteristics: Particular areas of the country or regions have different characteristics.
Demographic characteristics: gender, age, ethnicity and religion.
Seasonal and cyclical characteristics
Market growth rate.
Ansoff Matrix analytical tool that helps managers to choose and devise various product and market growth strategies.
Market Penetration: Low-risk
Selling existing product in existing markets: increasing market share.
Changing pricing or introducing a promotion.
Example: McDonalds Monopoly game.
Product Development: Medium-risk (Brand Development)
Selling new products in existing markets.
Example: McDonalds adding salads.
Market Development: Medium-risk
Selling existing products in new markets.
New channels of distribution or different geographical location.
Example: Nike making a different product for leisure not only sport.
Diversification: High-risk
Selling new product in new markets.
Example: Virgin is in music, airlines, communication and many other businesses.
Holding company: This is a business that owns a controlling interest in other diverse companies. Virgin is a holding company.
Read articles about Coca-Cola's strategy and decided which quadrant your article goes to
http://www.businessinsider.com/africa-is-the-future-of-coca-cola-2016-2
https://www.theguardian.com/media-network/media-network-blog/2013/jul/24/share-coke-teach-brands
http://www.forbes.com/sites/greatspeculations/2016/02/25/how-coca-cola-is-continuing-its-portfolio-diversification-strategy/#76b8815d1605
http://www.campaignlive.co.uk/article/coke-launches-biggest-new-product-campaign-decade-coca-cola-zero-sugar/1401122#
Look up your favorite businesses and see if you can find examples of the 4 different growth strategies.
Economies of Scale: Lower average costs of production as a firm operates on a larger scale due to productive efficiency.
Average Cost (AC) = Total Costs (TC) / Quantity of output
For example: if total costs of producing 1000 shirts amounts to $8000 then the cost of each shirt is $8.
Average Costs consist of two components: Average fixed costs (AFC) and Average variable costs (AVC).
AFC is calculated by dividing the total fixed costs by the level of output, i.e. AFC = TFC / Q Similarly, AVC is calculated by dividing the total variable costs by the level of output, i.e. AVC = TVC / Q
Nov. 1: SWOT analysis final lesson.
4 corners activity.
Work on individual SWOT analysis and written paragraph using your mission statement from our Organizational Objectives unit.
Guided questions to help you complete your SWOT analysis.
__https://www.mindtools.com/pages/article/newTMC_05.htm__
Helpful hints to help you with your written analysis:
Combine your strengths and opportunities: How will you go after the opportunities presented to you using your strengths?
Combine your weaknesses and opportunities: How will you overcome your weaknesses in order to go after the opportunties that you have?
Combine your strengths and threats: How can you use your strengths to reduce outside threats?
Combine your weaknesses and threats: Create a plan to prevent your weaknesses from making you open to outside threats.
Oct. 28:
SWOT Analysis for you!
Homework:
Utilitze the La Paz SWOT analysis to create direction for the school in the short term.
Use specific ideas from the table.
Oct. 27:
SWOT analysis
SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats.
Strengths: Internal factors that are favorable compared with competitors, examples are strong brand loyalty, highly skilled workers. Strengths help the business achieve its objectives. Strengths need to be developed and protected.
Weaknesses: Internal factors that are unfavorable when compared with rivals, they create competitive disadvantages. Weaknesses are therefore likely to prevent or delay the business from achieving its goals. To remain competitive, the business needs to reduce or remove its weaknesses.
Opportunities: External possibilities for future development, changes in the external environment that create favorable conditions fro a business.
Threats: External factors that hinder the prospects for an organization, they cause problems for the business.
SWOT analysis for this class:
Remember, a SWOT analysis is more than just listing internal and external factors. The next step is to analyze the factors and develop some strategies that we can implement in order to make our learning experience an enjoyable and productive one. In other words, address the following questions:
SWOT Analysis for you!
CASE STUDY
Oct. 25: Test
Oct. 21:
Homework: You will have a case study test on types of organization on Tuesday.
IPO Initial Public Offering: This is when companies first issue equity or debt to the public.
Reasons to take your company public:
As long as there is market demand the public company can issue more stock, thereby raising more money.
Mergers and Acquisitions are easier to do.
These companies are more liquid and can issue stock options to potential employees, thereby attracting good quality candidates.
http://www.mergersandinquisitions.com/initial-public-offering-process-ipo/
Another great reference that lays out the differences of for-profit social enterprises and not-for-profit social enterprises. We will address the not-for-profit side today.(Thanks to the IB Pamoja class!) This is the link to the power point I showed in class on Friday!
https://docs.google.com/presentation/d/1B9d19ydVfYbNc6JxXiaDs2vseNYAfaxuln3FDc27RoY/edit#slide=id.g2575f235b_037
For-Profit Social enterprises: revenue generating businesses with social objectives at the core of their operations. These businesses want to turn a profit and provide a social service as well. These businesses make a profit or surplus but it must be retained in the business for its self-preservation and growth.
Microfinance is a type of financial or banking service targeted at individuals and groups that would otherwise have no means of accessing credit. The aim of microfinance is to allow impoverished groups and individuals the opportunity to make money and become self-sufficient.
Microfinance: the good.
https://www.youtube.com/watch?v=_LK4XMF2u8Y
Microfinance: the bad.
http://bigthink.com/videos/when-microfinance-fails
banks do not typically lend such small amounts to this market segment.
are for-profit organizations that profit from the poor.
Cooperative: For-profit social enterprises owned and run by their members, such as employees or customers, with the common goal of creating value for their members by operating in a socially responsible way. All employees (members of the cooperative) have a vote and therefore contribute to teh decision-making.
improve staff motivation and productivity.
could be low causing disincentive.
the best way to raise funds.
Public sector company: A business enterprise owned and controlled by the state - also known as nationalized industry.
Public Private Partnership PPP: Involvement of the private sector, in the form of management expertise and/or financial investment, in public sector projects aimed at benefiting the public.
Non-profit organization: Any organization that has aims other than making and distributing profit and which is usually governed by a voluntary board. Non-profit organizations use their surplus revenues to achieve their social goals rather than distributing them as profits or revenues. Examples: public libraries, museums, government hospitals, social services such as the Red Cross, Oxfam.
Non-governmental organization (NGO): a legally constituted body with no participation or representation of any government with the same aims as a NPO. These operate in the private sector and are run for the benefit of others in the society. Example: UNICEF.
https://www.youtube.com/watch?v=PCxJ1Ug0v6s
An NGO is an association of person; that works for promoting humanitarian or cooperative objective instead of a commercial one. On the other hand, the NPO is an organization which is set up to promote art, science, education or any other social or cultural purpose; that intends to use its profit in the promotion of its objectives instead of dividing it among the members.
http://keydifferences.com/difference-between-ngo-and-npo.html
Charity: A non-profit social enterprise that provides voluntary support for good causes such as the protection of children, animals and the natural environment. Its key function is raising money from individuals and organizations to support a cause that is beneficial to society. Example: World Wildlife Fund.
Exam tip: Although charities are not-for-profit social enterprises, this does not mean that they do not strive to make a surplus. The extra money is not classified as "profit" because it does not get distributed to the owners or taxed by the government but is reinvested in the charity.
Oct. 20:
Business plan presentations.
Intrapreneur: The act of behaving as an entrepreneur but as an employee within a large business organization. They work in an entrepreneurial capacity, with the authority to create innovative products or new processes for the organization.
https://www.vocoli.com/blog/may-2014/10-inspiring-examples-of-successful-intrapreneurship/
Are you an intrapreneur?
Where would you work? What will you change/develop? How will your idea help the school? What actions will you take? How will you measure success? How can your teachers and administrators empower you to be an intrapreneur?
Watch the video and identify T Charts what the positives and negatives are when it comes to legal types of businesses.
https://www.youtube.com/watch?v=1Tpv3ElJc1Q
Types of businesses
Sole trader: a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.
Partnership: a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities.
Private limited company: a small to medium sized business that is owned by shareholders. This company cannot sell shares to the general public. Because the shares cannot be traded without the agreement of the Board of Directors, the directors maintain overall control of the company.
Public limited company: a limited company, often a large business, with the legal rights to sell shares to the general public. Its share price is quoted on the national stock exchange. They have completed an IPO and use this to raise large sums of financing. The management is different than the owners and sometimes their goals can conflict. Shareholders vote at the Annual General Meeting on re-election of the board of directors and approve the previous year's financial accounts after the directors present the annual report containing information about the company's performance.
October 11:
Use word clouds to find other departments that use the same words.
Compare your word clouds. Each student has a word cloud.
Find someone from another group that has the same word that you have in your word cloud. Create a visual map on the piece of paper in front of you. Why does this word overlap in the departments? What are the connections that you can make between departments? How can you use those connections to improve a business?
Why start a new business? External and internal factors.
1. Losing a job may provide the needed push.
2. Desire for more independence.
3. Financial security.
4. Identification of a market opportunity.
5. Social connections may encourage and facilitate the move.
6. Having a risk-taking or challenge-seeking personality.
PROBLEMS FACED BY START-UPS
Even if an entrepreneur has all of the right qualities, success with a new business can never be guaranteed. many businesses fail during the first year of operation, because of:
1. Competition
2. Building a customer base (You have to pull people away from the better known brands)
3. Lack of record keeping
4. Lack of working capital
5. Poor management skills
6. Changes in the business environment
Business Plan: This is the document that details how a business sets out to achieve its goals and objectives. It is useful because the owner needs to explain how it will market, finance and structure the employees of the business. It will also help to reassure the financial lenders. Elements of the business plan are as follows:
What is the business such as name, where it is located, who is the owner and their background, legal structure of business, goals and objectives.
The product and why it will be something that people want to buy including pricing and cost of production etc.
The market that the business will fall under along with competitor analysis.
The finance including how it will be funded, break-even analysis, forecasts of revenue and cash flow and return on investment.
The human factor including how many people will work for the company, organizational structure and wages.
The marketing including market research, unique selling point and promotional ideas.
http://100startup.com/#resources
Watch the video and identify T Charts what the positives and negatives are when it comes to legal types of businesses.
Types of businesses
Sole trader: a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.
Partnership: a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities.
Private limited company: a small to medium sized business that is owned by shareholders. This company cannot sell shares to the general public.
Public limited company: a limited company, often a large business, with the legal rights to sell shares to the general public. Its share price is quoted on the national stock exchange.
October 6:
Objective: For students to understand the 4 functional departments of a business and how they work together.
Four functional departments of business:
Marketing: The department that is responsible for market research and for analyzing the results of such research so that consumer wants can be correctly identified. This information will then be discussed with other departments of the business so that the right product decisions are made. Once a product is available for sale, the marketing function will have to make important decisions concerning its pricing, how and where to promote it and how to sell it and distribute it for sale. Toño, Santiago
Finance: This function has responsibility for monitoring the flow of finance into and out of the business, keeping and analyzing accounts and providing financial information to both senior management and other departments. Without adequate finance, no effective decisions can be made within the other functional areas, so finance is a key division of any business. Christine, Jade, Joustinne
Human Resources: Human Resource (HR) management identifies the workforce needs of the business, recruits, selects and trains appropriate staff and provides motivational systems to help retain staff and encourage them to work productively. It also draws up contracts of employment and covers the redundancy or redeployment of staff if these become necessary. Thomas, Marco
Operations: Operations has the responsibility for ensuring adequate resources are available for production, maintaining production and quality levels and achieving high levels of productive efficiency. Melodie, Randy, Manuel
Each of you to create a word cloud with words that you research from the internet to define your function.
http://www.wordclouds.com Ok. After making you all do that for homework, Randy told me it was not working so I found a different web site and you don't even have to make an account. Sorry about that!
Find words that overlap with another department and talk about ways that these people need to communicate in a business.
Are you an entrepreneur?
http://www.entrepreneur.com/article/247560
Why start a new business? External and internal factors.
1. Losing a job may provide the needed push.
2. Desire for more independence.
3. Financial security.
4. Identification of a market opportunity.
5. Social connections may encourage and facilitate the move.
6. Having a risk-taking or challenge-seeking personality.
PROBLEMS FACED BY START-UPS
Even if an entrepreneur has all of the right qualities, success with a new business can never be guaranteed. many businesses fail during the first year of operation, because of:
1. Competition
2. Building a customer base (You have to pull people away from the better known brands)
3. Lack of record keeping
4. Lack of working capital
5. Poor management skills
6. Changes in the business environment
October 4:
Objective: Students will understand and be able to identify the sectors of the economy.
Homework:
Go to the following website:
Choose 5 countries based on your interest. (You click on the country on the map in order to have their information displayed.)
Open up the Economy tab in the list below the map and the flag.
Read the information about the economy of your countries. Then look at the GDP (Gross Domestic Product) of the country. In what sectors do they make the majority of their income? Look at the Labor section of the economy. Where does the population work? Bring this information to class.
During class, we will be moving to the corner that best describes the economy in your countries of choice. Be prepared to tell your classmates about your countries. Each student will describe a country to their partner and their partner will share the findings to the class.
We will play a relay race game with the sectors and then have a wrap up check for understanding "quiz".
Relay teams:
Melodie, Thomas, Marco P., Santiago
Christine, Thomas, Manuel, Joustinne
Jade, Manuel, Toño
Sept. 30:
Objective: The students will understand and be able to identify the 4 sectors of the economy.
Sectors of the economy:
Primary: firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms.
Secondary: firms that manufacture and process products from natural resources, including computers, brewing, baking, clothing and construction.
Tertiary: firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications.
Quaternary: services involving complex processing and handling of information: education and research, engineering, IT specialist, etc.
Finishing up our lesson on command terms.
Use your Bloom's Taxonomy chart to write questions using the command terms on the following case studies.
Sept. 27: Corporate Social Responsibility Wrap up today.
We will be commenting on 3 ideas:
Businesses have a positive impact on society and the environment.
Businesses have an impact on society and the environment.
Businesses have a negative impact on society and environment.
Groups of 5 to read and talk about what was on the board.
3 questions:
Questions after the exercise:
Define CSR.
Compare and Contrast the ideas that are on the board. How do they reveal ways to encourage businesses to adopt ethical and socially responsible objectives?
Recommend to a board of directors whether or not to work towards being seen as “the leading multinational in economic, social and environmental responsibility.”
We will look at the command terms for the course and plot them on the Bloom's Taxonomy chart. This will help us understand the case study tests that you will be expected to answer over the duration of the course.
Sept. 20: All students present their articles from their research for homework credit.
Rubric for CSR presentation
Sept. 16:
Short quiz on the reading and the TED talk.
Man By Steve Cutts
https://www.youtube.com/watch?v=WfGMYdalClU
Objective: The students will be able to understand the benefits and drawbacks of CSR by looking at a real world example.
Brainstorm the benefits and drawbacks of Corporate Social Responsibility.
In the TED talk by Michael Porter and TIME magazine article, you came across lots of examples of how companies have embraced corporate social responsibility and have adopted an 'ethical code' in decision-making. For the next exercise, we are going to look at Volkswagon, a company that was perceived to be a great CSR company, but was found to be lacking. Toms, a company that started with the intention to combine CSR with a for profit organization and with CS
Group 1: Manuel, Joustinne, Thomas
Using your research skills, create a presentation that introduces VW as a brand before Sept. 2015. Discuss the perception of the brand before the diesel scandal by their employees, their shareholders, and their customers. What were their organizational objectives? Teach the rest of the class about their place in the global economy. Besides the questions above here are some other questions that might help you:
VW is a public limited company. Define what that means. Does this create an atmosphere of unethical objectives?
How did VW capitalize on their "clean diesel" initiative?
Why was VW considered one of the world's most socially responsible companies?
What was VW's financial standing before the scandal?
Can you find some examples of marketing from before the scandal?
What are some of the benefits of CSR for their company?
What are some of the drawbacks?
Group 2: Santiago, Jade, Marco P., Christopher
Using your research skills, create a presentation that explains VW's diesel scandal to the class. What ethical decisions were made and talk about how they affected their stakeholders both internally and externally by making the decisions that they did.
Why did VW manipulate their exhaust system?
How do we know that they manipulated their exhaust system?
What were the financial costs of this scandal?
What were the legal ramifications of the scandal?
Can you find some examples of marketing after the scandal?
What are some of the benefits of CSR for their company? What are some of the drawbacks?
Group 3: Christopher, Toño, Melodie
Using your research skills, create a presentation about the company Toms. What kind of company are they? What do they sell? What are their Organizational Objectives? What is the perception of customers, shareholders, and suppliers. Come up with some other questions that will show the benefits and drawbacks for CSR for their company.
Group 4: Randy and Christine
Using your research skills, create a presentation about the company Halliburton. What kind of company are they? What do they do and what do they do well? What are their financials? What are their Organizational Objectives? What is the perception of customers, shareholders and other stakeholders? Come up with some other questions that will show the benefits and drawbacks of CSR for their company.
Sept. 13:
Article and blog post are due to me by 10:00pm on Sunday Sept. 11 by email.
Objective: To understand and use the concepts that will be taught throughout the course by making connections to a real world organization through looking at Organizational Objectives. (Change, Strategy, Culture, Ethics, Innovation, Globalization.)
Vocabulary: Stakeholder, Corporate Social Responsibility (CSR)
We will evaluate the articles that you sent in last night. I received everyones except Jade's and Manuel's.
What you are looking for:
STAKEHOLDER is any person or organization with a direct interest in, and is affected by, the activities and performance of a business: examples: customers, suppliers, pressure groups, competitors, government.
INTERNAL STAKEHOLDER: any member of the organization: examples: managers, employees, directors and shareholders.
Corporate Social Responsibility
On 11th December 2012, one of the world’s leading reputation management consultant firms, the Reputation Institute, announced that 'Microsoft ranked number one (Links to an external site.) for corporate social responsibility'.Should businesses be solely concerned with making profits for their shareholders or should businesses also recognize the needs of other stakeholders, such as employees, suppliers and members of the community?
When a business recognizes that it has legal and moral responsibilities to stakeholders other than investors, it is said to be practicing corporate social responsibility (CSR). This growing acceptance of CSR has led to businesses adopting an ‘ethical code’ in their decisions.
Step 1
Individually, brainstorm a list of at least five core values of an ethical business person.
Step 2 Groups:
Manuel, Thomas, Jade, Marco P.
Christine, Randy, Christopher, Melodie
Joustinne, Santiago, Toño
Share these traits with your group. As you chat with your teammates about the lists, consider these TOK links:
Consolidate and agree on the five most important traits and create a team list.
Watch this TED talks video by Michael Porter entitled 'Why business can be good at solving social problems (Links to an external site.)'
Read the TIME article entitled 'Why companies can no longer afford to ignore their social responsibilities (Links to an external site.)'
In the above video and TIME magazine article, you came across lots of examples of how companies have embraced corporate social responsibility and have adopted an 'ethical code' in decision-making. Examples of companies who have done this include:
Using your research skills, find an example of Volkswagen's ethical objectives and talk about how they affected their stakeholders both internally and externally by making the decisions that they did. Find a stakeholder conflict that happened because of the decisions made by some in the organization.
Article about CSR: Corporate Social Responsibility and Volkswagon
http://blog.caranddriver.com/everything-you-need-to-know-about-the-vw-diesel-emissions-scandal/
The responsibility that a business has to all stakeholders, not just shareholders.
Sept. 8:
Change, Culture, Ethics, Globalization, Innovation, Strategy
CUEGIS presentation.pptx
Innovation - Miss Amy
http://www.wsj.com/articles/headphone-jack-removal-wouldnt-be-apples-first-customer-disruption-1473190952?tesla=y
With reference to one or two organizations you have studied, examine the role of innovation in possible growth strategies.
In my article about Apple and the new iPhone that is coming out this week, I found that innovation was a large part of their corporate culture. One of the objectives that Apple has set for themselves to "innovate and dictate the movement for further technology". This is shown by eliminating the port for headphones on the new iPhone that is being released this week. As the article tells us, Apple has eliminated or changed ports in the past with some success. They have made sure to be at the forefront of the technology sector by setting the trends in the market and foreseeing where the market is going.
They have used product innovation in this example to increase sales, stake their claim as a product leader, and to differentiate themselves from the rest of the phone industry. They have also created a need for new accessories such as wireless headphones. This is a way that they use innovation to drive accessory sales but to also create a shift in listening habits throughout the world.
There is usually push back from the consumer at first because they are not used to the new technology or they do not own the accessories necessary to use the product. However, because of the market share that Apple commands, they are able to persuade consumers that they are right. Their influence as a company has been tested so they are perceived as the leader in their sector.
This is just one relevant example of Apple using its innovation to drive sales and continue to push technology in a new direction.
Change- Christopher and Santiago
Culture- Melodie and Joustinne
Ethics- Randy and Christine and Marco
Globalization- Manuel and Jade
Strategy- Thomas and Toño
Find an article that discusses organizational structure from the last 2 years about a real world company that uses the concept that your team has been given above. Consider the requirements below.
About blogging:
https://www.youtube.com/watch?v=livzJTIWlmY
During this trimester, every other week you will upload an article and a blog (about 3 paragraphs), you will develop a Business and Management lens through which you view a current business article of interest related to the topics that we are covering and at least one of the business concepts (culture, change, ethics, globalization, and innovation)
These Blogs will be an extension of the classroom and you will be using this as a vehicle for reflection, reading, writing, collaboration and critical thinking.
We will be using Paper 2 Section C criteria which is as follows:
- Section C
- The principal focus of questions in this section is on the concepts of change, culture, ethics, globalization, innovation and strategy that underpin the business management course.
- While the principal focus for each question is on two of the concepts, students need to draw on their knowledge of other relevant topics in the syllabus.
- There is no stimulus material provided for the questions.
- Students are required to address the question in relation to at least one real-world organization but may use information from a range of sources, which may include real-world case studies examined in class and IA research. The real-world organization that students use in their responses must not be the case study organization featured in paper 1.
- The response should consider the perspectives of individuals and societies on which the real-world organization impacts.
- Students answer one extended response question from a choice of three.
- Assessment objective level 3 (AO3) command terms are used in the questions.
- The questions require: knowledge and understanding; application and analysis; synthesis and evaluation; and a variety of appropriate skills.
- Each question is worth 20 marks.
- Section C is worth a total of 20 marks.
Sept. 6:For section C, marks are allocated using assessment criteria. Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria.
Overall, the maximum for paper 2 is 50 marks.
Homework: Put your mission statement and SMART goals on the google doc that Jade sent out today during class. This is due before class on Thursday.
Aims, objectives, strategies and tactics are the key terms we will investigate in this lesson. Corporate aims are the long-term goals that a business hopes to achieve. Vision and mission statements give an organization a sense of purpose.
Objectives are the specific ends that the organization must achieve to carry on its mission. Once objectives that reflect the organization's overall goals have been established, management must choose a strategy to achieve them. A strategy provides the framework for the overall action of the organization, nothing could be achieved without outlining the tactics. Tactics refer to the day-to-day functioning of certain business operations.
Common Objectives for Companies:
Profit Maximisation: Production at the level of output where the greatest positive difference between total revenue and total cost is achieved.
Profit Satisficing: Aiming to achieve enough profit to keep the owners happy but not aiming to work flat out to make as much profit as possible.
Growth: Could be the growth of sales or value of output.
Increasing Market Share: The growth of a business in its market.
Factors Determining Corporate Objectives:
Corporate Culture: Code of behavior and attitudes that influence the decision-making styles of the managers and other employees of the business.
Size and legal structure of a business: This depends on the owners and the people that control the business. What are they looking for in return on investment?
Public or private sector:
Well established business vs a new business: New businesses are more likely to be driven by the desire to survive. Later the business can pursue other objectives such as profit and growth.
Key Points
What are the Aims, Objectives, Strategies and Tactics of the Business and Management course?
Aims: Mission statement
Objectives: IB and dual language school
Strategies: SIOP Planning, ATLs
Tactics: Formative and Summative assessments
Here is the slideshare about the learning outcomes of this section:
https://docs.google.com/presentation/d/1yPnpyasEjFAzHovCyMJhvsWtvC18AIbiSDUcgDPenAk/edit#slide=id.i20
Concept Connection
Sept: 2:
1. Now think of your favorite company/brand. What is their mission statement? Evaluate the usefulness of the mission statement for planning future strategies for your chosen business.
Evaluation of mission statements: Does it include?
Customers, Products and services, markets, technology, survival, philosophy, self-concept, concern for public image, employees?
Does it mention values?
Citizenship, Teamwork, Excellence, Integrity
Is it customer or product oriented?
2. Look up the La Paz Community School mission statement. Do you think that this mission statement is effective and gives employees, students and parents a good insight into the aims of the school?
Our mission is to educate the culturally diverse youth of Guanacaste through bilingual experiential learning and enrichment that integrates the local community and ecology, while preparing students to become thoughtful, creative, and active stewards of their environment and world.
3. Create a mission statement for yourself. What do you want to include? Who are your stakeholders that you need to direct your communication toward? Stand and deliver for your classmates.
Miss Amy's mission statement is to provide engaging and informative instruction to the students at La Paz Community School that will ignite a love for lifelong learning and encourage students to follow their passion.
August 30:
Content objective: Students will be able to define and analyze mission statements and vision statements of different companies.
Vocabulary objective:
Mission Statement: A simple declaration of the underlying purpose of an organization's existence and its core values. (What is our business?)
Vision Statement: An outline of an organization's aspirations (where it wants to be) in the distant future.
Look at the Vision and Mission Statements that have been posted around the room. Please get up and read them.
Choose one that resonates with you.
Write: Why did you choose this mission/vision statement? What words stood out to you in the text? Why?
Talk about your ideas with your partner. Then we will share as a class.
Do you think that the existence of a mission statement or visions statement influences your company's performance? If so, why?
First Trimester Syllabus
Homework or assignments will be part of your participation grade. They will be given a pass or fail grade.
Participation in class is also a pass or fail system. Make sure to come to class, participate in all the activities, and add your voice when you have something to say.
There will be case studies throughout the trimester. These will be graded using the IB 1-7 scale.
There will be one large project with a local business. That will be graded using the La Paz 1-4 scale.
Your final case study exam will be an overview of the entire trimester and will be graded using the IB 1-7 scale.
My definitions on this page will be taken from Business and Management by Paul Hoang. This is our textbook for this class. I have 2 copies if you would like to read it anytime.
August 31: Create our own mission statement